5. Given the exchange rates above, explain the steps you could take to turn $10,000 USD into millions if the USD/CHF exchange rate was such that 1 USD bought 2 CHF? (ARBITRAAAAAGE!!!!!) 4. You graduate college and decide to travel around the world. You start with USD 10,000 and visit a currency exchange in every country you visit to convert your remaining money to the local currency. As expected, the currency exchange will sell a currency to you at the offer rate, and it will buy a currency from you at the bid rate. Lucky twist! You are very fortunate that you make a good, rich friends in ever place you visit and they insist on paying for everything. Convert your USD 10,000 according to your travel itinerary and rate sheet below. Itinerary: US to Canada (e.g. sell 10,000 USD, buy XX CAD) Canada to France (e.g. sell XX CAD, buy YY EUR) France to Switzerland Switzerland to the U.K. U.K. to Japn Japan back to the U.S. Rate Sheet: BID ASK USD per 1 Euro 1.20394 1.20404 USD per 1 GBP 1.33992 1.34002 JPY per 1 USD 104.386 104.396 CAD per 1 USD 1.29559 1.29569 GDP per 1 EUR 0.898440.89854 JPY per 1 GBP 139.875 139.885 CAD per 1 EUR 1.5599 1.561 CAD per 1 GBP 1.73589 1.73619 CHF per 1 EUR 1.08373 1.08383 CHF per 1 GBP 1.20608 1.20627 a. How much money do you have when you return to the U.S.? Why don't you have $10,000? 5. Given the exchange rates above, explain the steps you could take to turn $10,000 USD into millions if the USD/CHF exchange rate was such that 1 USD bought 2 CHF? (ARBITRAAAAAGE!!!!!) 4. You graduate college and decide to travel around the world. You start with USD 10,000 and visit a currency exchange in every country you visit to convert your remaining money to the local currency. As expected, the currency exchange will sell a currency to you at the offer rate, and it will buy a currency from you at the bid rate. Lucky twist! You are very fortunate that you make a good, rich friends in ever place you visit and they insist on paying for everything. Convert your USD 10,000 according to your travel itinerary and rate sheet below. Itinerary: US to Canada (e.g. sell 10,000 USD, buy XX CAD) Canada to France (e.g. sell XX CAD, buy YY EUR) France to Switzerland Switzerland to the U.K. U.K. to Japn Japan back to the U.S. Rate Sheet: BID ASK USD per 1 Euro 1.20394 1.20404 USD per 1 GBP 1.33992 1.34002 JPY per 1 USD 104.386 104.396 CAD per 1 USD 1.29559 1.29569 GDP per 1 EUR 0.898440.89854 JPY per 1 GBP 139.875 139.885 CAD per 1 EUR 1.5599 1.561 CAD per 1 GBP 1.73589 1.73619 CHF per 1 EUR 1.08373 1.08383 CHF per 1 GBP 1.20608 1.20627 a. How much money do you have when you return to the U.S.? Why don't you have $10,000
