(b) If you begin by holding 1,000 AUD , can you make a profit from these exchange rates ? How ? (c) Find the arbitrage profit per 1,000 AUD 3. Consider the following (buy /sell ) rates posted by an Australian bank : GBP /AUD 0.3706 - 0.3796 AUD /SGD 0.9387 - 0.9737 which are quoted in the form used by Moosa . (a) Identify each of the four numbers : who is buying and who is selling and to whom ; are these direct or indirect quotes , from whose perspective ? Explain . GBP /AUD is an Indirect quote from Australia's perspective AUD /SGD is a Direct quote from Australia's perspective