5. (4%) A currency trader notices that a broker in London is quoting S(USK/NOK) 0.1150. At the same time, a broker in New York is quoting S(USK/NOK)-0.1138. Suppose she has $20,000,000 in her account; how should she do to make a profit? What is the percentage profit for her arbitrage? (Round to 2 decimal points) 6. (10%) On 10th Oct, 2007 the spot rate in three major forex markets are as follows: New York forex market: S(S/E)=1.4109; London forex market: S($/L)-2.0356; Frankfurt forex market: S(/E) 0.6915 a. Is there any possibility of triangular arbitrage? b. If the transaction costs are ignored, how does a Britain investor make money? c. What is the percentage profit for this arbitrage? (Round to 2 decimal points) 7. (5%) On 10th Oct. 2007, ICBC offers the RMB price of dollar as follows: spot 30 day 90 day 180 day 7.5176 7.7074 7.6695 7.6231 Is the dollar selling at a premium or discount? b. What is the forward pr/ds on dollar for 3 months? What is the annualized forward prds on RMB for 6 months