bid and ask prices of Citibank Chase Bid $0.0224 S0.0228 Ask $0.0227 $0.0229 a) Is locational arbitrage possible? Assume an investment of $100,000 and find out if profits are possible through arbitrage. b)Besides the bid and ask quotes for the Thai baht provided in the previous question, Citibank has provided the following quotations for the U.S. dollar and the Japanese yen: Value of a Japanese yen in U.S. dollars Value of a Thai baht in Japanese yen Quoted Bid Price $0.0085 Quoted Ask Price $0.0086 Determine whether the cross exchange rate between the Thai baht and Japanese yen is appropriate. If it is not appropriate, determine the profit you could generate with an investment of S100,000 by engaging in triangular arbitrage. Suppose you are able to obtain several forward contract quotations for the Thai baht to determine whether covered interest arbitrage may be possible. You are quoted a forward rate of $0.0225 per Thai baht for a 90-day forward contract. The current spot rate is $0.0227. Ninety-day interest rates available in the U.S. are 2 percent, while 90-day interest rates in Thailand are 3.75 percent (these rates are not annualized) Determine whether the covered interes arbitrage is possible. If so, how much profit can be generated with an investment of $100,000