Question

Triangle arbitrage: is based solely on differences in exchange rates between spot and futures markets. opportunities can exist only in the forward markets. is a profitable opportunity involving three separate currency exchange transactions. prevents the currency markets from obtaining equilibrium. is illegal in the U.S.

Answer 1

a profitable opportunity involving three separate currency exchange transactions.

Step-by-step explanation:

A triangular arbitrage occurs when the exchange rate between 3 currencies do not match up.