c$)$ Separately, you see the spot rates for the dollar, euro, and pound below.

i$)$ Compute the synthetic $\frac{\text{\$}}{f}$ rate from the other two rates.

ii$)$ Ignoring transaction costs $($bid$-$ask spreads$),$ can you make money? $($Yes$/$No$)$

iii$)$ If so$,$ compute the dollar profit $($a positive number$).$ It not, compute the dollar loss $($negative$).$ Start by trading $1.$ Specify the three executable transactions below. Each box should show a signed cash flow. A positive cash flow represents a purchase, while a negative cash flow represents a sale. Net cash flows for the pound and the euro should be zero, i$.$e$.,$ the profit$/$loss should be made only in dollars.