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2. The following exchange rates are available to you. (You can buy or sell at the stated rates.) Chihuahua Bank Chase Bank Bank of Roubaix

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2. The following exchange rates are available to you. (You can buy or sell at the stated rates.) Chihuahua Bank Chase Bank Bank of Roubaix MXN13.646/USD USDI.125/EUR MXNI5.367/EUR Assume you have an initial EURI0,000,000. Calculate the MXN/EUR cross rate using the Chihuahua Bank and Chase Bank rates. The cross rate calculation should be different than the Bank of Roubaix quote. a. You are an experienced arbitrager. Explain how you can take advantage of this discrepancy to make arbitrage profits b. c. Calculate the arbitrage profit that can be gained. Show your steps and intermediate calculations

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