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QUESTION
Bank of Canada quotes C$1 change 0.7055US dollar; And Darling Bank quotes A$1 can change 0.5980USD; ZZA Bank quotes one AUD change C$0.
Bank of Canada quotes C$1 change 0.7055US dollar; And Darling Bank quotes A$1 can change 0.5980USD; ZZA Bank quotes one AUD change C$0.8485.
And these quotes are simultaneously observed spot rates, can we make an arbitrage profit? If we can earn, could you show the calculation of profit if we started with one million AUD with no transaction costs here. After that, what % of transaction cost would eliminate this profit?
