4. (a) You observe the following quotes for the USDIAUD in the spot market from two banks: Bank of Sydney Bank of New York Bid Ask Bid Ask 0.6926 0.6928 0.7030 0.7075 Do these quotes imply the possibility of earning a prot by using locational arbitrage? If so, calculate the potential prot if you are able to use AUD 25,000. Ifnot, explain why arbitrage is not possible? (5 marks) (b) You observe the following quotes for the GBP IAUD in the spot market 'om two banks: Bank of Melbourne Bank of London Bid Ask Bid Ask Do these quotes imply the possibility of earning a prot by using locational arbitrage? If so, calculate the potential prot if you are able to use GBP 50,000. Ifnot, explain why arbitrage is not possible? (10 marks) c) You observe the following quotes for the Cl-[F IAUD in the spot market from two banks: Bank of Australia Bank of Switzerland 0.7002 0.7 095 0.7054 0.71 l 6 Do these quotes imply the possibility of earning a prot by using locational arbitrage? If so, calculate the potential prot if you are able to use Cl-[F 250,000. Ifnot, explain why arbitrage is not possible? (10 marks)