1. Assume the US and Canada follow the gold standard and there is a fixed exchange rate between the USD and CAD as follows: USD Government.: will buy or sell gold at 1000 USD per Troy ounce CAD Government.: will buy or sell gold at 1200 CAD per Troy ounce USD Government will buy or sell either currency at IUSD = 1.25CAD CAD Government: will buy or sell either currency at ICAD = .83333 USD (a) How much arbitrage profit can you mlike if you are a US investor with $100,000 to use in one arbitrage cycle? Explain (b) If neither government will exchange currencies into gold and the "street" exchange rate is 1 CAD = .83333 USD, how much arbitrage profit can you make if you are a US investor with $100,000 to use in one arbitrage cycle? Explain