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11. A bank has the following quotes: $0.6380/CS, 50.7620/SF, and CS1.2142/SF. If a trader starts with a nominal $8,000,000, what should she do to exploit

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11. A bank has the following quotes: $0.6380/CS, 50.7620/SF, and CS1.2142/SF. If a trader starts with a nominal $8,000,000, what should she do to exploit the arbitrage opportunity and how much profit would she make (assume the bid and ask prices are the same)? a. Buy SF with $, sell SF for CS, sell CS for $, make $132,909 b. Buy C$ with S, sell CS for SF. buy S with SF, make SF132,239 c. Sell S for SF, sell SF for CS, buy $ with CS, make $3,601,510. d. Buy SF with $, sell SF for CS, buy S with CS, make SF132,909 e. None of the above, triangular arbitrage is not possible

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