3. Suppose you observe for the following quotes for the curo (in RMB) in Shanghai, for RMB (in pounds) in London, and curos (in pounds) in Paris. Shanghai: RMB 8.7097-8.8125 London: Pound 0.0962 -0.0999 Paris: Pound 0.7948 -0.8065 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with RMB 10.40. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work 4. Suppose you observe for the following quotes for the Mexican peso (in US dollars) in Mexico City, for dollars (in Korean won) in New York, and Mexican pesos (in Korean won) in Seoul Mexico City: $0.0769 -0.0798 New York: won 1099.9982 - 1136.8952 Seoul: won 75.9042 - 76.9230 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with won 1000. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work 3. Suppose you observe for the following quotes for the curo (in RMB) in Shanghai, for RMB (in pounds) in London, and curos (in pounds) in Paris. Shanghai: RMB 8.7097-8.8125 London: Pound 0.0962 -0.0999 Paris: Pound 0.7948 -0.8065 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with RMB 10.40. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work 4. Suppose you observe for the following quotes for the Mexican peso (in US dollars) in Mexico City, for dollars (in Korean won) in New York, and Mexican pesos (in Korean won) in Seoul Mexico City: $0.0769 -0.0798 New York: won 1099.9982 - 1136.8952 Seoul: won 75.9042 - 76.9230 a. Demonstrate that an arbitrage opportunity exists by selecting any two markets and showing that the implied quote does not overlap the actual quote in the third market. b. Suppose you start with won 1000. Below, please show the total profit that can be made by exploiting the arbitrage opportunity. You must show your work