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2. (Triangular Arbitrage, 10pts) These are the quotes from spot market. Citigroup 108/$ Credit Suisse $1.156/ Deutsche Bank 130/ (1) (2pts)Compute the cross rate S($/)

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2. (Triangular Arbitrage, 10pts) These are the quotes from spot market. Citigroup 108/$ Credit Suisse $1.156/ Deutsche Bank 130/ (1) (2pts)Compute the cross rate S($/) from the quotes of Citigroup and Deutsche Bank. (2) (5pts) Use the cross rate to determine the direction of arbitrage in a currency triangle. Calculate your profit in yens with 1,000 investment (3) (3pts) Calculate your profit in dollars with $1,000 investment

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