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Instructions: Please show all your calculations in an orderly fashion. There is no credit for just the answers. Please work alone as collaborating with others

Instructions: Please show all your calculations in an orderly fashion. There is no credit for just the answers. Please work alone as collaborating with others constitutes cheating.

1. You observe the following exchange rate quotes

: $ 1.2100 / EUR

GBP 0.7421 / $

GBP 0.8800 / EUR

If you start with $ 1 million, what arbitrage profit in dollars can you make using triangular arbitrage?

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