Given that these banks are posting the exchange rates of the Euro, British pound and the Malaysian Ringgit.

i) Calculate the implied cross rates to see if an arbitrage exists. (2 marks)

ii) Supposed that a value of 5,000,000 is available to you. Find the estimated profit you can make per round trip. (2 marks)

iii) What are the main assumptions in arbitrage profit? Explains (2 marks)

JPMorgan Chase. Maybank S(RM/)=5.44 S(/)=1.12 RM Standard Chartered S(/RM)=0.23