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Arbitrage Chain

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Looking for help in how to approach finding an arbitrage chain that starts with USD given the following information:

1. JPY/USD: Bid-102.000 Ask-103.000
2. JPY/CHF: Bid-97.000 Ask-98.000
3. CHF/USD: Bid-1.0600 Ask-1.0620
Cross Bid-1.04082 Ask-1.06186

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Solution Summary

The solution explains how to prepare an arbitrage chain.

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Here an arbitrage chain is possible since the cross bid ask rate for CHF/USD differs from the available CHF/USD rate
To start the chain -
We start with ...

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