Are you guys seeing a mistake in this problem? Or is it me - bugged out at 1AM doing Arb Triangle questions?.. Schweser Qbank: Donna Ackerman, CFA, is an analyst in the currency trading department at State Bank. Ackerman is training a new hire, Fred Bos, a recent college graduate with a BA in economics. Ackerman and Bos have the following information available to them: Spot Rates Bid Price Ask Price USD:EUR €1.0000 €1.0015 USD:GBP ₤2.0000 ₤2.0100 GBP:EUR €0.3985 €0.4000 Ackerman and Bos are interested in pursuing profitable arbitrage opportunities for State Bank. Using the appropriate bid or ask rates for the USD:EUR and the USD:GBP, what will be the profits from triangular arbitrage, starting with $1,000? A) $243.78. B) $248.46. C) $245.65.
Isnt this a Level II question? I thought this was not in Level III LOS - can someone please confirm?