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2. You are given the following exchange rates: SS $1.35/ in New York SEE = 1.85 / in London ses = 0.75 / $ in

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2. You are given the following exchange rates: SS $1.35/ in New York SEE = 1.85 / in London ses = 0.75 / $ in Frankfurt a. Is there an arbitrage opportunity? Hint: Use the equation Sdie x Self Sid to test for an arbitrage opportunity. b. If there is an arbitrage opportunity, how much profit will you make it start with 1,000,000. (Show your work)

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