Tokyo foreign exchange market: 1 JPY =11USD 30.00.
New york foreign exchange market: 1 USD =0.7500.
London foreign exchange market: 1 = 150.00 yen.
Exchange rate multiplication: 1 1 30.00 * 0.7500 *150.00 = 0.8654, which is not equal to1.There is an arbitrage opportunity of110,000 USD, which can be converted into Japanese yen in Tokyo market and then exchanged in London market.
1000000 *130/0.75/1000000 =155555.56 USD, that is, it becomes1/kloc-0 after arbitrage.