Assume you are a trader with Deutsche Bank. From the quote screen on your computer terminal, you notice that Dresdner Bank is quoting EUR/USD at 1.2460 and Credit Suisse is offering USD/CHF at 0.8854. You learn that UBS is making a direct market between the Swiss franc and the euro, with a current EUR/CHF of 1.1043. (Ignore bid-ask spreads for this problem.) Assume you have $5,000,000 with which to conduct the arbitrage. What is the profit or loss if you initially buy Euros with your USD? (answer in USD, no cents)

Selected Answer:	1,371,790
Correct Answer:	4,947 1

I have no idea how they got these numbers Please Help!!!

EXHIBIT 5.7 Exchange Rates Currencies April 3, 2019 U.S. dollar foreign-exchange rates in late New York trading Wed - Country/Currency In US$ Per US$ Americas 0233 42.854 Argentina peso Brazil real 2583 3.8715 Canada dollar .7493 1.3345 Chile peso 001500 666.73 000320 3123.6 Colombia peso Ecuador US dollar 1 Mexico peso 0520 19.220 Peru new sol 3034 3.296 Uruguay peso 02965 33.4300 Asia-Pacific Australian dollar 7113 1.4060 1-mos forward 7117 1.4051 3-mos forward 7125 1.4035 6-mos forward .7139 1.4008 China yuan .1490 6.7114 1274 7.8494 Hong Kong dollar India rupee 01461 68.425 0000703 14223 Indonesia rupiah 00897 111.49 Japan yen 1-mos forward 00899 111.22 3-mos forward 00903 110.70 6-mos forward 00910 109.90 Malaysia ringgit 2452 4.0790 New Zealand dollar 6778 1.4753 Pakistan rupee 00709 140.47 Philippines peso 0192 52.124 Singapore dollar 7387 1.3537 South Korea won .0008814 1134.5 Taiwan dollar 03246 30.812 data from Bloombern and DANDA De cuttenco Commer Country/Currency Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro 1-mos forward 3-mos forward 6-mos forward Hungary forint Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc 1-mos forward 3-mos forward 6-mos forward Turkey lira UK pound 1-mos forward 3-mos forward 6-mos forward Middle East/Africa Bahrain dinar Egypt pound Israel shekel Jordan dinar Kuwait dinar Lebanon pound Saudi Arabia riyal South Africa rand UAE dirham tort In US$ 03150 00004 04372 .1505 1.1233 1.1262 1.1319 1.1407 00351 1167 2619 01533 1079 1.0018 1.0047 1.0104 1.0193 1778 1.3158 1.3180 1.3218 1.3277 2.6526 0577 2777 1.4104 3.2854 00066 2666 0707 2723 Wed Per US$ 31.748 23146.3 22.874 6.6457 8903 8880 8835 8767 284.71 8.5728 3.8183 65.241 9.2695 9982 .9953 9897 9811 5.6248 7600 .7588 .7565 7532 3770 17.325 3.6016 7090 3044 1507.50 3.7504 14.146 3.6730