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. Show how you can make a triangular arbitrage profit by trading at these prices. (Ignore bid-ask spreads for this problem. Assume that you have $5,000,000 with which to conduct the arbitrage)

(Please enter your answer in the format: e.g., buy $50,000 or sell 25,000)

Step1: (e.g., buy $50,000 or sell 25,000 ) ?

Step2: (e.g., buy $50,000 or sell 25,000 ) ?

Step3: (e.g., buy $50,000 or sell 25,000 ) ?

Step4: total profit or loss is (just the amount with currency sign, e.g., "$5,000" for a profit or "-$5,000" for a loss ?