thought i had this down…
i am doing challenge problem 12 of ECON p.315 schweser:
EUR/USD: 0.7-0.701
USD/GBP: 1.7-1.701
EUR/GBP: 1.2-1.201
what is the profit on triangle arbitrage on 1 million USD? when i go one way around the triangle, i get the right answer (6372$), but when i go the other way, i get minus 9159$. is that right? should i go both ways and take the positive number as the answer?作者: dontknow1987 时间: 2013-4-22 08:43
no one said that if you do the traingle the other way around it’s gonna be the same number.
in fact, both of your calculation are good.作者: Micholien 时间: 2013-4-22 08:44
right, so what is the difference between the 2 numbers i am getting?作者: Colum 时间: 2013-4-22 08:44
the difference has no meaning. only one way can make money in triangular arb. at the end you should have more than you started with.作者: krause2 时间: 2013-4-22 08:46
yeah its just about making a profit…if one way makes cash, then thats the answer.作者: PieMan 时间: 2013-4-22 08:46
yeah, that was a brain fart. gotta stop eating those beans. can’t afford it tomorrow!
