xilinx_altera

"Given the bid ask quotes, the potential arbitrage profits from triangular arbitrage based on an initial position of 1m USD are closest to"
A 0 USD
B 7,212 USD
C 6,372 USD

I used 1.2 because GBP:EUR 1.2 1.201 is the bid ask spread. At this point, I have pounds and want to buy Euros. The bank is buying pounds for euros 1.2 and selling pounds for euros 1.201. We make the transaction at his asking price.

My way of thinking of it is that buy GBP for EUR at the ASK 1.201 but in this case we want to buy EUR with GBP, the other way around. so the inverse EUR:GBP 1/1.201 - 1/1.2 and then we want to BUY EUR with GBP at the ask (1/1.2)=0.8333GBP/EUR and we have 587,889 GBP so will have to inverse it again.

Maybe too much flipping for some but works for me.