Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting 0.7627/$1.00 and Credit Suisse is offering SF1.1806/$1.00. You learn that UBS is making a direct market between the Swiss franc and the euro, with a current /SF quote of 6395. (Ignore bid-ask spreads for this problem.) (a) Based on Dresdner Bank and Credit Suisse bank's quotes, what is the no-arbitrage (equilibrium) cross rate between Swiss Franc and Euro? ( points) (6) Is Swiss Franc overvalued or undervalued with UBS direct quote between Swiss Franc and Euro? (2 points) (c) Show how you can execute different transactions to make a triangular arbitrage profit by trading at these prices (Please state your transactions clearly: buy which currency and sell which currency at which price) Assume you have $5,000,000 with which to conduct the arbitrage (8 points)