International Financial ManagementAssignment on ArbitrageSolve the following problems:$1.$ Suppose Bank of America and Chase Bank announce their bid and ask price for the Canadian dollar, as shown in the table below: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Bank of America Chase Bank Bid $$0\mathrm{.}734$ $$0\mathrm{.}738$ Ask $$0\mathrm{.}737$ $$0\mathrm{.}739$ Assume that you have $$100,000$ to invest and want to make profits from locational arbitrage. a$)$ Show below how you can earn profit by engaging in locational arbitrage. $($You must know the meaning of bid price and what numbers to use from the table.HINT:Step $1$: Buy Canadian dollars from Bank of AmericanStep $2$: Sell your Canadian dollars to Chase Bank Step $3$: Compute for profit in US dollars. b$)$ In addition to the bid and ask prices for the Canadian dollar provided in the previous question, Bank of America has provided the following questions for the U$.$S$.$ dollar and euro: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Quoted Bid Price Quoted Ask Price Value of one euro $ in U$.$S$.$ dollars $$1\mathrm{.}05$ $$1\mathrm{.}06$ Value of a Canadian dollar in euro $$0\mathrm{.}71$ $$0\mathrm{.}72$ Assume that you have $$100,000$ to invest. Determine the profit you could generate with $$100,000$ by engaging in triangular arbitrage. HINT:Step $1$: Exchange dollars for Canadian dollars.Step $2$: Convert the Canadian dollars into euros.Step $3$: Convert the euro to dollars.Step $4$: Compute for profit in US dollars.