Triangular Arbitrage You are given these quotes by the bank:
You can sell Canadian dollars (CS) to the bank for s0.70.
You can buy Canadian dollars from the bank for SO.73.
The bank is willing to buy dollars for 0.9 euro per dollar.
The bank is willing to sell dollars for 0.94 euro per dollar.
The bank is willing to buy Canadian dollars for 0.64 euro per
The bank is willing to sell Canadian dollars for 0.68 euro per C $0.
You have $100,000. Estimate your profit or loss if you attempt to engage in triangular arbitrage by converting your dollars to euros, then converting your euros to Canadian dollars, and then converting your Canadian dollars to U.S. dollars.
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