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2. Consider the following spot rates for converting U.S. dollars (USD) and Canadian dollars (CAD). Toronto: bid=1.254 CAD per USD. ask= 1.258 CAD per USD.

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2. Consider the following spot rates for converting U.S. dollars (USD) and Canadian dollars (CAD). Toronto: bid=1.254 CAD per USD. ask= 1.258 CAD per USD. New York: bid=0.814 USD per CAD. ask= 0.851 USD per CAD. (10) a. Consider converting 500,000 USD to CAD in New York and then converting the resulting amount of CAD back to USD in Toronto. Are there arbitrage opportunities? (5) b. Suppose the bid and ask in Toronto are: bid=1.16 CAD per USD ask= 1.163 CAD per USD. Are there arbitrage opportunities

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