D Question 16 15 pts You are a proprietary trader at an Australian Hedge Fund based in the Cayman Islands You have been trading in equities arbitrage and notice a potential trading opportunity The price of QBE on the ASX is $8.95 (in local currency where instrument is trading) The price of the QBE ADR is $6.41 (in local currency where instrument is trading) The AUD/USD exchange rate is 0.8105 (1.e. 1AUD -0.8105USD) The AUD/EUR exchange rate is 0.7087 lie., 1AUD-0.7087EUR) Your transaction costs are $0.35 per trade. Note: your profits are reported in AUD. Is there an arbitrage opportunity, and if so, how much? Yes, there is an opportunity for a $0.68 profit per trade. No, there is no arbitrage opportunity. Yes, there is an opportunity for a $0.17 profit per trade. Yes, there is an opportunity for $0.34 profit per trade