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2. Assume that back in 1995 the British pound () is worth FF9.80 in Paris and SFr5.40 in Zurich. Swiss franc (SFr) is worth two

2. Assume that back in 1995 the British pound () is worth FF9.80 in Paris and SFr5.40 in Zurich. Swiss franc (SFr) is worth two French francs (FF). That is, S(FF/) = FF9.80, S(SFr/) = SFr5.40, and S(FF/SFr) = FF2. Show how British arbitrageurs can make profits given that the Swiss franc is worth two French francs. What would be the profit per pound transacted

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