2. If a pair of shoes in the United States costs $45, and a pair of the exact same shoes is sold in Mexico for 430 pesos while the exchange rate is E = $0.1100/pesos, what arbitrage opportunities exist (if any)? Ignoring transactions costs, explain how you would take advantage of this. Assuming your company has a contract to purchase 100,000 computers from a Korean company. The payment is due on receipt of the shipment and must be delivered in Korea on December 31, 2013. In July 2013, when you are arranging the contract, the computers are priced at 500,000 won each. The spot rate in July 2013 is $1 in exchange for 1,250 won. 3A) Calculate the U.S. dollar price (in July 2013) of one unit of Korean currency 3B) What is the total price of the computers in dollars? 40) What is the total price of the computers in won? 5D) What would you advise your firm to do to avoid a loss on the deal if the Korean won costs 10% more compared to the U.S. dollar when payment is due in December