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Could you please answer question 3 A) and B) with detail of calculation. Thank you 3. Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank quotes

Could you please answer question 3 A) and B) with detail of calculation. Thank you

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3. Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank quotes 6 1 = US$1.1758.BNZ Bank quotes 1 = NZ$1.7762. a. If these quotes are simultaneously observed spot rates, can you make an arbitrage prot? If so, calculate what prot would you make if you started with NZ$ 1 million. Assume that there are no transaction costs. (10 marks) What would be your arbitrage prot if you were to incur total transaction costs of 0.1% of the amount used for conversions

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