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3. Royal bank of Canada quotes C$1 = US$ 0.7055. Citibank quotes A$ 1 = US$0.5980. ANZ bank quotes A$ 1 = C$0.8485. A. If

3. Royal bank of Canada quotes C$1 = US$ 0.7055. Citibank quotes A$ 1 = US$0.5980. ANZ

bank quotes A$ 1 = C$0.8485.

A. If these quotes are simultaneously observed spot rates, can you make an arbitrage profit? If so, calculate what profit would you make if you started with A$ 1 million. Assume that there are no transaction costs

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