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4. Assume the following information for Castine Bank Quoted Bid Price Quoted Ask Price Value of Pound in U.S. Dollars $1.2618/ Value of Canadian Dollar

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4. Assume the following information for Castine Bank Quoted Bid Price Quoted Ask Price Value of Pound in U.S. Dollars $1.2618/ Value of Canadian Dollar in US Dollars Value of Pounds in Canadian Dollars S0.7556/CAD CADI. 7094/ $1.2710VE $0.7559/CAD CAD1.7194/ Assume your company has $25,000,000. a. Calculate the CAD/ cross bid rate. b. Calculate the CAD/ cross ask rate. c. Based the numbers you calculated in "a" and "b", briefly explain if triangular arbitrage should be possible. d. Calculate the number of Pounds you will have if you convert your dollars into Pounds. e. Calculate the number of Canadian Dollars you will have if you convert the Pounds from "d" into Canadian Dollars. f. Calculate the number of US Dollars you will have if you convert the Canadian Dollars from "e" into US Dollars

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