Triangular Arbitrage Illustration 8
GBP/CHF Spot 4.8360/70
GBP/JPY Spot 190.90/191.30
What do you expect to get for CHF/JPY? Suppose a quote is available for CHF/JPY 39.3360/39.3670, what arbitrage possibility is opened up?
(Ans.: Cross Rate 39.4666/39.5575 and Gain 2,530)
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