Holooly Rewards

We are determined to provide the latest solutions related to all subjects FREE of charge!

Please sign up to our reward program to support us in return and take advantage of the incredible listed offers.

Enjoy Limited offers, deals & Discounts by signing up to Holooly Rewards Program

Holooly Ads. Manager

Advertise your business, and reach millions of students around the world.

Holooly Tables

All the data tables that you may search for.

Holooly Arabia

For Arabic Users, find a teacher/tutor in your City or country in the Middle East.

Holooly Sources

Find the Source, Textbook, Solution Manual that you are looking for in 1 click.

Holooly Help Desk

Need Help? We got you covered.

Chapter 7

Q. 7.ST.1

Assume that the following spot exchange rates exist today:
£1 = $1.50
C$ = $.75
£1 = C$2
Assume no transaction costs. Based on these exchange rates, can triangular arbitrage be used to earn a profit? Explain.


Verified Solution

No. The cross exchange rate between the pound and the C$ is appropriate, based on the other exchange rates. There is no discrepancy to capitalize on.