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Arbitrage Gain 1) Suppose the Japanese yen exchange rate is $106=$1 and the British Pound exchange rate is 1=$1.51. Suppose the cross-rate is quoted as

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Arbitrage Gain 1) Suppose the Japanese yen exchange rate is $106=$1 and the British Pound exchange rate is 1=$1.51. Suppose the cross-rate is quoted as 165=f1. Is there an arbitrage opportunity? If yes, calculate the arbitrage profit on $20,000. 2) Suppose the Swiss Franc exchange rate is CHF 2.00 = USD 1.00 and the British Pound exchange rate is GBP 0.60= USD 1.00. Suppose the cross-rate is quoted as 3 CHF=1GBP. Is there an arbitrage opportunity? If yes, calculate the arbitrage profit on $5,000

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