he following are New York closing rates for C$/US$ and SFr/US$: C$/$ = 1.3450; SFr/$ = 0.9750

(a) Calculate the cross rate for C$ in terms of SFr (SFr/C$).

(b) If the C$ was trading at SF0.7300 in Zurich at the same time, was there an arbitrage opportunity? If so, show how arbitrageurs with C$ could have profited from this opportunity and calculate the arbitrage profits in C$ and in percent. (15 points)