The exchange rate between Currencies A and B is 2.08A/B. You compare the exchange rates...
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The exchange rate between Currencies A and B is 2.08A/B. You compare the exchange rates between Currencies A and C and between Currencies B and C and realize that they are telling you that the exchange rate between A and B should be 1.99A/B. If you make one set of three trades between the three currencies, what will your percentage arbitrage gain be if there are no transaction costs? Go out four decimals - for example, write 3.62% as .0362.
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