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10. Minzu Bank has provided the following quotations for the U.S. dollar, the Japanese yen and the Thai baht: Quoted Bid Price Quoted Ask Price

10. Minzu Bank has provided the following quotations for the U.S. dollar, the Japanese yen and the Thai baht:

Quoted Bid Price Quoted Ask Price
Value of Japanese Yen in US Dollars $0.0085 $0.0086
Value of Thai Baht in Japanese Yen 2.69 2.70
Value of Thai Baht in US Dollars $0.0224 $0.0227

Determine whether the cross-exchange rate between the Thai baht and Japanese yen is appropriate. If it is not appropriate, determine the profit you could generate by withdrawing US$100,000 from your bank account and engaging in triangular arbitrage before the rates are adjusted.

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