Given the following exchange rates GBP/ARS 19.5, GBP/USD 1.3 and USD/ARS 14.25, conclude the following;
a. Calculate whether any profit can be made through triangular arbitrage.
b. If it were possible to make a profit through triangular arbitrage what would be the implications for the financial marketplace and the role of arbitrage.
c. If the 180-day forward rate for the dollar were GBP/ARS 21.45 what does this tell you about inflation in Agentina, explain your assumptions and the link with the concept of arbitrage.