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Fill out the following table with appropriate blank $/ and $/ bid quotes of based on the $/ and $/ ask quotes and the cross-exchange

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Fill out the following table with appropriate blank $/ and $/ bid quotes of based on the $/ and $/ ask quotes and the cross-exchange rates. Quotation Bid Ask $/ 1.5000 $/ 1.4256 / 0.9400 Cross exchange rates (/) 0.9500 0.9600 Find the appropriate blank quoted ask rate for / such that your arbitrage profit is about 1% (i.e., if you start with one unit of a currency, you will end up with 1.01 units of the same currency). Show how you will achieve that using one of the following triangles. Note: You are an investor, not the dealer. $ $ E If you use the other triangle, what would be your loss in percentage? Fill out the following table with appropriate blank $/ and $/ bid quotes of based on the $/ and $/ ask quotes and the cross-exchange rates. Quotation Bid Ask $/ 1.5000 $/ 1.4256 / 0.9400 Cross exchange rates (/) 0.9500 0.9600 Find the appropriate blank quoted ask rate for / such that your arbitrage profit is about 1% (i.e., if you start with one unit of a currency, you will end up with 1.01 units of the same currency). Show how you will achieve that using one of the following triangles. Note: You are an investor, not the dealer. $ $ E If you use the other triangle, what would be your loss in percentage

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