1. Is there a possible arbitrage opportunity considering the following currency rates assuming instantaneous performed trades and absence of transaction costs? Explain why (not) and show the made profit (loss) for an investment of 1000000.

EUR-USD 1,1378

USD-RUB 66,2901

EUR-RUB 74,8211

2. Dealers however require compensation for providing foreign currencies which is charged through a bid-ask spread. Considering the new currency rates, is there still an arbitrage opportunity present? Show the made profit (loss) for an investment of 1000000.

Bid Ask

EUR-USD 1,1377 1,1379

USD-RUB 66,2876 66,2926

EUR-RUB 75,4184 75,4324