4) You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.50=1.00 and the dollar-pound exchange rate is quoted at $2.00=1.00. If a bank quotes you a cross rate of 1.00=1.25. Discuss whether there is an arbitrage opportunity or not. If there is, briefly explain how you can make money. 5) The $/CD spot bid-ask rates are $0.7560$0.7625. The 3-month forward points are 12-16. Determine the $/ CD 3 -month forward bid-ask rates