A foreign exchange trader with one hundred thousand British Pound (100,000) is analyzing the potential for an arbitrage profit, given the

following exchange rates:

What steps should the trader take in order to make an arbitrage profit? Describe every detail of each transaction the trader should make (include amounts paid and received, and units).

Rabobank quotes for the pound (baht/pound exchange rate) Citibank quotes for the pound (kunalpound exchange rate) Deutsche Bank quotes for the kuna (baht/kuna exchange rate) bid quote B 44. kn 8.70/E B 4.90/kn ask quote B 44.6/E kn 8.80E B 5.00/km