Given the following exchange rates. Find out arbitrage possibilities.KL: MYR 5.4875 – 5.5450 / GBPLondon: MYR 5. 5125 – 5.5875 / GBP

Sure, let's find out if there are any arbitrage opportunities here. Arbitrage in foreign exchange markets refers to the simultaneous purchase and sale of a currency in different markets to profit from unequal prices.

Here are the steps:

1. First, let's look at the exchange rates in KL and London. In KL, you can buy GBP at MYR 5.5450 and in London, you can sell GBP at MYR 5.5875.

2. If you buy 1 GBP in KL, it will cost you MYR 5.5450. You can then sell this 1 GBP in London for MYR 5.5875.

3. Subtract the cost from the sale price to find your profit: 5.5875 - 5.5450 = MYR 0.0425.

4. Therefore, there is an arbitrage opportunity. You can make a profit of MYR 0.0425 for every GBP you buy in KL and sell in London.

Remember, this is a simplified example and doesn't take into account transaction costs or taxes, which could reduce or eliminate the profit.