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1. Take the following two exchange rates and compute the INR/EUR cross exchange rate. USD.0825/INR and EUR.8150/USD 2. In question 1, if there is a

1. Take the following two exchange rates and compute the INR/EUR cross exchange rate. USD.0825/INR and EUR.8150/USD

2. In question 1, if there is a direct cross exchange rate of INR 13.94/ EUR, is there a triangular arbitrage opportunity? If yes, start with $50,000 and indicate how much triangular arbitrage profit exists for 1 trip around the triangle.

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