Assuming the following quotes:

New York $/gbp

London eur/gbp

Frankfurt $/eur

Bid

1.2575

1.1925

1.1315

Ask

1.2715

1.2115

1.1425

Your currency is the gbp. Calculate cross rate and if there are arbitrage possibilities. If so, Explain what to do with 1 million gbp.

3. Assuming the following quotes: Bid Ask $/gbp 1.2575 1.2715 New York London eur/gbp 1.1925 1.2115 Frankfurt $/eur 1.1315) 1.1425 Your currency is the gbp. Calculate cross rate and if there are arbitrage possibilities. If so, Explain what to do with 1 million gbp. 25 34