1. Suppose you observe the following quotes for Thai baht (in Vietnamese dong) in Bangkok, for Czech koruna (in Vietnamese dong) in Ho Chi Minh City, and baht (in Czech koruna) in Prague. Bangkok: dong/baht 649.35062-656.89420 Ho Chi Minh City: dong/koruna 1038.6277 1041.6667 Prague: koruna/baht 0.5896 -0.6076 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with Baht 154. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work. 2. Suppose you observe the following quotes for Thai baht (in Korean won) in Bangkok, for yuan (in baht) in Shanghai, and yuan (in Korean won) in Seoul. Bangkok: won/baht 30.9876 - 31.2500 Shanghai: baht/yuan 5.0325 -5.0794 Seoul: won/yuan 163.9344-165.8678 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with RMB 6.10. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work 3. Suppose you observe for the following quotes for the euro (in RMB) in Shanghai, for RMB (in pounds) in London, and euros (in pounds) in Paris. Shanghai: RMB 8.7097 - 8.8125 London: Pound 0.0962 -0.0999 Paris: Pound 0.7948 -0.8065 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market