1. The first is to judge whether there is an arbitrage opportunity. All three markets are converted to the same pricing method. Obviously, only London is indirectly priced here, and others are directly priced, so they are all directly priced. The benchmark currency is 1:

New york: GBP 1 = USD 1.5703 ~ 15 Middle price: 1.5709.

London: HKD 1 = GBP 0.080734-0.080744 Middle price: 0.080739.

Hong kong: us $65438 +0 = hk $ 7.7853~72; median price: 7.78625.

It is profitable if the exchange rate multiplication (consider using the middle price) is not equal to 1. 1 .5709 * 0.080739 * 7.78625 = 0.98755, which does not mean that1will make a profit, that is, there will be arbitrage opportunities.

2. Calculate arbitrage profit

Because the product of the three is less than 1, it is obviously a loss (that is, starting from the new york market), then starting from the London market, that is, converting 2 million pounds into Hong Kong dollars, then converting Hong Kong dollars into US dollars in the Hong Kong market ((2000000/0.080744)/7.7872), and then converting them into pounds in the new york market, minus 2000.

Namely: 2000000/(0.080744 * 7.7872 *1.5715)-2000000 = 24062.98.

Arbitrage profit 24062.98.

Note: The simple way to choose exchange rate during exchange is to multiply decimals and divide large ones.