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	$1.5812=1.00
National Westminster quotes euros per pound	1.1833=1.00
Deutschebank quotes U.S. dollar per euro	$0.7285=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	$	1,000,000.00
Convert to euros at Deutschebank quote

Convert euros to pounds at NatWest quote

Convert pounds to US$ at Citibank quote

$

Arbitrage gain (loss)

$

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	$	1,000,000.00
Convert to pounds at Citibank quote

Convert pounds to euros at NatWest quote

Convert euros to US$ at Deutschebank quote

$

Arbitrage gain (loss)

$

Triangular arbitrage

path #1

path #2

yields a positive profit.(Select from the drop-down menu.)