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    The International Aspects of Financial Management

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    Currently, you can exchange $1 for 100.37 yen or ?0.7538 in New York. In Tokyo, the exchange rate is $1= ?0.0077. If you have $1,000, how much profit can you earn using triangle arbitrage?

    a) $18.08
    b) $25.27
    c) $27.91
    d) $32.50
    e) $33.14

    See the attached file.

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    Solution Summary

    A detailed illustration on the use of triangle arbitrage.