Assume the following spot exchange rates:

.70/A$, 1.49/, and A$2.8/

Based on that, as arbitrageurs perform triangular arbitrage, what should happen to the spot exchange rates?

1 ) The Australian dollar value in euros should appreciate, the pound value in euros should appreciate, and the pound value in Australian dollars should depreciate.

2 ) The Australian dollar value in euros should depreciate, the pound value in euros should appreciate, and the pound value in Australian dollars should depreciate.

3 ) The Australian dollar value in euro should appreciate, the pound value in euro should depreciate, and the pound value in Australian dollars should appreciate.

4) The Australian dollar value in euro should depreciate, the pound value in euros should appreciate, and the pound value in Australian dollars should appreciate.