Angie has been offered Can$1.75 for £1. How much profit can she earn on a triangle arbitrage if the official rate is $1 = Can$1.2834 and the USD equivalent of £1 is $1.3699? Assume she currently has $100 in cash.
A) $.46
B) $.73
C) $1.09
D) $1.37
E) $.57
A) $.46
Explanation: Profit = [$100(Can$1.2834/$1)(£1/Can$1.75)($1.3699/£1)] ? $100
Profit = $.46
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