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10. Martin Short is a trader with JP Morgan and specializes in cross-rate arbitrage. On his computer screen, he observes the following quotes: Swiss Franc/US

10. Martin Short is a trader with JP Morgan and specializes in cross-rate arbitrage. On his computer screen, he observes the following quotes: Swiss Franc/US Dollar = SFr0.8843/$ British Pound/US Dollar = 0.7980/$ British Pound/Swiss Franc = 0.9087/SFr Ignoring transaction costs, does Martin Short have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how much would he profit if he has $3,000,000 available for this purpose? What /SFr price would eliminate this arbitrage

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