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Consider the following bilateral exchange rates involving the Australian dollar (AUD), Indian Rupee (INR), British pound sterling (GBP), and United States dollar (USD): GBP per
Consider the following bilateral exchange rates involving the Australian dollar (AUD), Indian Rupee (INR), British pound sterling (GBP), and United States dollar (USD): GBP per USD (GBP/USD) 0.86540.8656 AUD per USD (AUD/USD) 0.98970.9899 INR per USD (INR/USD) 0.99750.9977 GBP per AUD (GBP/AUD) 0.77420.7745 GBP per INR (GBP/INR) 0.86740.8676 INR per AUD (INR/AUD) 0.99780.9980 Assume at the start that you have GBP 20,000. You can also assume that all interest rates are zero and there are no trading restrictions. Can you identify any positive arbitrage opportunities from this set of exchange rates? Consider all possible positive arbitrage opportunities. Explain and show your working clearly and completely. Give your final answers in GBP. If there are no positive arbitrage opportunities, explain and show clearly why
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