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Determining triangular arbitrage using the swiss franc


Problem:

Triangular Arbitrage Using the Swiss Franc. The following exchange rates are available to you. (You can buy or sell at the stated rates.) Assume you have an initial SF12,000,000. Can you make a profit via triangular arbitrage? If so, show the steps and calculate the amount of profit in Swiss francs.

Mt. Fuji Bank                    ¥ 92.00/$

Mt. Rushmore bank          SF1.02/$

Mt. Blanc Bank                 ¥ 90.00/SF 

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Finance Basics: Determining triangular arbitrage using the swiss franc
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