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Given the following exchange rate quotes, find and calculate triangular arbitrage opportunity and its profit level, then set up the strategy. Citi Bank: 0.85/$

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Given the following exchange rate quotes, find and calculate triangular arbitrage opportunity and its profit level, then set up the strategy. Citi Bank: 0.85/$ British Bank: *130/ Japanese Bank: 120/S (1) 6 points: Start the trading with $1000, try to calculate the possible triangular arbitrage profit. (MUST show your work for credit) (2) 2 points: Describe the sequence of the 3 banks that you need to trade with in order to earn this arbitrage profit. That is to identify which of these 3 banks should you trade with $1000 firstly, which bank should you trade with next, and which one is the last bank you trade with.

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