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Given the following rates, what arbitrage profit may be made with respect to the Australian dollar? USD 1 = AUD 1.70 USD 1 = SGD

Given the following rates, what arbitrage profit may be made with respect to the Australian dollar?

USD 1 = AUD 1.70

USD 1 = SGD 1.70

AUD 1 = SGD 0.96

A. 0.1753 cents

B. 0.5882 cents

C. 1.7526 cents

D. 5.882 cents

The Indonesian economy is predicted to average 64% per annum inflation over the next two years. If the forecast inflation for Australia over the same period is 2.5% per annum, how much will a rupiah cost you in two years' time if the current exchange rate is $0.1293/rupiah, and PPP is maintained?

A: $0.0505

B: $0.0808

C: $0.3310

D: $0.2069

***please show the full calculation

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