Around the Horn (A). Assuming the following quotes, calculate how a market trader at Citibank with $1,000,000 can make an intermarket arbitrage profit. (Click on the icon to import the table into a spreadsheet.) Bank Citibank National Westminster Deutschebank Spot Rates $1.6195/ 1.2831/ $1.26247 We calculate the profit (loss) of the following arbitrage strategy: (Round to two decimal places.) Path #1: USD to EUR to GBP to USD Start with USD ($) 1,000 000.00 Convert USD to EUR at Deutschebank ask quote () Around the Horn (B). Assume the following bid-ask quotes and calculate how the market trader can now make an intermarket arbitrage profit (Click on the icon to import the table into a spreadsheet.) Bank Citibank National Westminster Deutschebank Spot Rates $1.6190-96/ 1.2831-34/ $1.2613-15/ We calculate the profit (loss) of the following arbitrage strategy (Round to two decimal places.) Path #1: USD to EUR to GBP to USD Start with USD ($) Convert USD to EUR at Deutschebank ask quote () Convert EUR to GBP at NatWest ask quote () 1,000,000.00 792,707 09 617 661.75 Convert GBP to USD at Citibank bid quote ($) 999,994.38 Arbitrage profit (loss) ($) (5.62) We calculate the profit (loss) of the following arbitrage strategy: (Round to two decimal places.) Path #2: USD to GBP to EUR to USD 1,000,000.00 Start with USD ($) Convert USD to GBP at Citibank ask quote () Around the Horn. Assuming the following quotes, calculate how a market trader at Citibank with $1,000,000 can make an intermarket arbitrage profit. Citibank quotes U.S. dollar per pound National Westminster quotes euros per pound Deutschebank quotes U.S. dollar per euro $1.6278= 1.00 1.2271 = 1.00 $0.7443 = 1.00 Calculate the profit (loss) from the intermarket arbitrage profit through path #1 below. (Round to the nearest cent.) Path #1: US$ to euros to pounds to US$ Starting amount $ Convert to euros at Deutschebank quote 1,000,000.00 1,343,544.27 1,094 893 87 Convert euros to pounds at NatWest quote f Convert pounds to US$ at Citibank quote $ 1,782,268,24 Arbitrage gain (loss) $ 782,268.24 Calculate the profit (loss) from the intermarket arbitrage profit through path #2 below: (Round to the nearest cent.) Path #2: US$ to pounds to euros to US$ Starting amount to $ 1,000,000.00 Convert to pounds at Citibank quote