3. Here are 3 spot exchange rates at a particular point in time in Tokyo: E%"0.009E%" 1.15 Eve-135 What is the cross-rate between dollars and yen using the last 2 rates? E%cross- Given this information, is it cheaper to buy yen directly (the first exchange rate) or indirectly through the cross rate? Suppose an arbitrager had S1 million available. Explain how this arbitrage would work through the cross rate, and the profits (in S) that would be made on this arbitrage. Profits- Explain what would happen to each exchange rate (rise or fall) as a result of arbitrage: Es VE . Answer problem 3 in Chapter 2 a. Percentage changes in: Cs peso