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Assume that there is no transaction cost and you observe the following quotation: 1. HKD: USD...

Assume that there is no transaction cost and you observe the following quotation:
1. HKD: USD 0.1250
2. USD: JPY 116.20
3. JPY: HKD 0.062

Which is the correct way to conduct Triangular Arbitrage?

If you start with $1,000,000, after 1 round of Triangular Arbitrage, how much USD will you have (your capital Plus your profit)?

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Answer #1

Ginen HKD luso 0.1250 116.20 USDJPY JPY! HID 0.062 to HRD convert $1000,000 $ 1 000,UD HKD 8,000,000 0.1250 Convert HKD to JPArbitrage profit is $110,432.51

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