1. The following exchange rates are available to you. (You can buy or sell at the stated rates.) Assume you have an initial SF 11,700,000. Can you make a profit via triangular arbitrage in Swiss Francs? Mt. Fuji Bank 93.49/$ Mt. Rushmore Bank SF 1.05/$ Mt. Blanc Bank 90.76/SF

No, the rates are fairly priced at all those different banks; therefore, no arbitrage is possible.

No, no arbitrage is possible. In fact, there can be a loss of -SF 221,973.18.

Yes, there is an opportunity of arbitrage profit in the amount of SF 173,224.54

Yes, there is an opportunity of arbitrage profit in the amount of SF 226,265.91