Following are the quotation by Bank XYZ

	Quoted Bid price	Quoted Ask Price
Value of a British Pound in U.S. dollars	$1.60	$1.61
Value of a Canadian dollars (C$) in U.S. dollars	$ 0.80	$ 0.81
Value of British pound in Canadian dollar (C$)	C$ 2.10	C$ 2.20

Assume that you are a speculator and have $10,000.

i. What will be your steps to gain from triangular arbitrage?

ii. Will triangular arbitrage be worthwhile under this condition?

B) Assume that the deposit rate of US (home country) is 5%, while the deposit rate of Mexico (foreign country) is 12%. According to international fisher effect theory what should be adjustment in Mexican Peso. If the spot rate of Mexican Peso is $ 0.085, what will be the rate after adjustment?

*Don't do it on Excel. Do it on a paper.* Thanks