1) Suppose you observe the following direct spot quotations in New York and Toronto, respectively: 0.8000 50 and 1.2500 60. What are the arbitrage profits per $1 million?

2) Suppose the SF is quoted at 0.4442 86 in London and the pound sterling is quoted at 2.2523 42 in Bern.

1. a. Is there a profitable arbitrage situation? Describe it.
2. b. Compute the percentage bid-ask spreads on the pound and SF.

3) Assuming no transaction costs. Suppose 1 = $1.9411 in New York, $1 = 0.8756 in Paris and 1 = 0.6588 in London. How could you take profitable advantage of these rates?

I need help with these questions. Thank you.