Question

In: Economics

1-Exchange rate for Turkish Lira (TL) is $2 Exchange rate for Swiss Franc is $4 The...

1-Exchange rate for Turkish Lira (TL) is $2

Exchange rate for Swiss Franc is $4

The cross rate between franc and TL is 3 francs per TL.

Is there an triangle arbitrage opportunity to make profit?

True

False

2-Exchange rate for Turkish Lira (TL) is $2

Exchange rate for Swiss Franc is $4

The cross rate between franc and TL is 3 francs per TL.

How much profit would you make at most if you have $100?

A-$200

B-$400

C-$500

D-$300

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