Choose the best answer:

1) The intergalactic currency market exchange ratio, $M/$U.S., between the Martian Dollar [$M] and the U.S. Dollar [$US] presently is 1/5.The price of a bushel of apples on Mars is two (2) Martian Dollars, or MPA = $M2.00.The corresponding price of an economically identical bushel of apples on Earth is one (1) U.S. Dollar, or USPA = $US1.00.Calculate the first round of profits for a person arbitraging the apples who starts out with $US100,000 in cash holdings.

a.)$US 200,000 profit from participating in commodity arbitrage

b.)$US 500,000 profit from participating in commodity arbitrage.

c.)$US 900,000 profit from participating in commodity arbitrage.

d.)$US 1,000,000 profit from participating in commodity arbitrage.