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Assume you have 1 million. Please round the rates/ratio to the 4th decimal places and also round up to the nearest dollar amount in

   


Assume you have 1 million. Please round the rates/ratio to the 4th decimal places and also round up to the nearest dollar amount in your calculation. (a) What is the implied cross-rate of in terms of (i.e., /)? (Show your Calculation) (b) Is there an arbitrage opportunity? If yes, show the potential arbitrage profit. (Show your Calculation) (c) Can this opportunity be sustained over the long-term, Why? or Why not? The quotes for U.S$, and are as follows from three different banks. Deutsche Bank: 0.85/$ BNP Paribus Bank: $1.30/ HSBC: 1.12/

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