3. Suppose you observe for the following quotes for the euro (in RMB) in Shanghai, for RMB (in pounds) in London, and euros (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 3. Suppose you observe for the following quotes for the euro (in RMB) in Shanghai, for RMB (in pounds) in London, and euros (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