REE 4956- The Singapore dollar—U.S. dollar (S$/$) spot exchange rate
The Singapore dollar—U.S. dollar (S$/$) spot exchange rate is S$1.60/$, the Canadian dollar—U.S. dollar (CD/$) spot rate is CD1.33/$ and the S$/CD spot exchange rateis 1.15. Assume you have $1,000,000 with which to conduct the arbitrage. Show how youcan make a triangular arbitrage profit by trading at these prices. Please list your strategies and determine the triangular arbitrage profit. (Ignore bid-ask spreads for this problem.)