4. You have been hired as a currency trader at JP Morgan Chase, and you observe the following rates at the various foreign exchange markets: New York: 108 yen/ $ London: $1.1 / euro Singapore: 120 yen/ euro If you combine the rates in London and Singapore, you will get a cross rate of 109.09 yen / $ (: 120 yen / euro + $1.1 / euro). Applying the rule of \"buy low sell high,\" you would want to buy dollar in New York and sell dollar in the \"combined London and Singapore market.\" Specifically, you will sell $100 in London for 90.91 euro, then sell 90.91 euro in Singapore for 10909 yen. Finally, you sell 10909 yen in New York for $101. Your profit for one series of trade is $1. [Of course, if the rates in the three markets never change, you can repeat your strategy by selling $101 in London and make an unlimited amount of profit. However, you know that such profit opportunity will be arbitraged away quickly. Specifically, there will be pressure for $ to appreciate against yen in New York, $ to depreciate against euro in London, and yen to appreciate against euro in Singapore]