Given the following rates,what arbitrage profit may be made with respect to the Australian dollar?
USD 1 = AUD 1.70
USD 1 = SGD 1.70
AUD 1 = SGD 0.96
A) 0.1753 cents
B) 0.5882 cents
C) 1.7526 cents
D) 5.882 cents

Question

Quizplus · Accepted Answer

By converting USD to AUD, then AUD to SGD, and finally SGD back to USD, the arbitrage profit is calculated as 1.7526 cents per USD.

Given the Following Rates,what Arbitrage Profit May Be Made with Respect