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3. Assuming the following quotes: Bid Ask New York $/gbp 1.2575 1.2715 London eur/gbp 1.1925 1.2115 Frankfurt $/eur 1.1315 1.1425 Your currency is the euro.

3. Assuming the following quotes: Bid Ask New York $/gbp 1.2575 1.2715 London eur/gbp 1.1925 1.2115 Frankfurt $/eur 1.1315 1.1425 Your currency is the euro. Calculate cross rate and if there are arbitrage possibilities. If so, Explain what to do wit 100 thousand euros

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