1 Arbitrage 25 points a) (5 points) Simple arbitrage: Suppose that the spot exchange rate is 1.35/$ in Singapore and 1.33/$ in Tokyo. Explain the process you would use to make money from this discrepancy. b) (4 points) How much prot could you make in the above situation if you have $10,000? c) (5 points) Would you make the same amount of prot if one of the prices quoted above was a forward market rate for 6 months from now? (1) (6 points) If you saw the following information, explain the process you would use to make money from this situation assuming that you have US dollars right now. eur to usd Q; Q All News Shopping Maps Books More Settings Tools Abotn l4,100,000 results (0 37 seconds) 1 Euro equals 1.20 US Dollar 1 l3 0 1 Euro 1 4 .2 1.20 us Dollar I W 1.0 20M 2Ul5 2016 20W 2018 0 Deckmiei XE: Convert EUR/USD. Euro Member Countries to United States Dollar wwwxecom > XE Currency Converter , Live Rates v EUR to USD currency converter Get live exchange rates for Euro Member Countries to United States Dollar. Use XE's free calculator to convert foreign currencies and preclous metals. EUR to USD Exchange Rate - Bloomberg Markets https://www.bloomberg.com/quote/EURUSD20UR v Current exchange rate EURO (EUR) to US DOLLAR (USD) Including currency converter, buying 3' selling rate and hlslorical conversion chart In case you have trouble reading the image above, the exchange rates are: $1.20/, 15,841.16 $/BTC, and 12,398.98 /BTC. e) (3 points) Why do you think it was possible for a situation like the one in the previous part to exist? f) (2 points) How much prot could you make in the above situation if you have $10,000