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  3. suppose the /$ exchange rate is $1.2070 = 1.0, the

Suppose the /$ exchange rate is $1.2070 = 1.0, the Yen/ exchange rate is 126.70...

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Finance

  1. Suppose the /$ exchange rate is $1.2070 = 1.0, the Yen/ exchange rate is 126.70 (1 will purchase 126.70 yen), and the US $ will purchase 104.97 yen. In this scenario is arbitrage possible. If so, what is the potential profit per $1,000,000 US if one conducts triangular arbitrage?

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