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Lee Messy specializes in cross-rate arbitrage. He notices the following quotes: Australian dollar/Swiss franc A51.1464/SH Swiss franc/dollar S16003/5 Australian dollar/U.S. dollar A51.8251/5 ignoring transaction
Lee Messy specializes in cross-rate arbitrage. He notices the following quotes: Australian dollar/Swiss franc A51.1464/SH Swiss franc/dollar S16003/5 Australian dollar/U.S. dollar A51.8251/5 ignoring transaction costs, does Leo Messy have an arbitrage opportunity based on these quotes? Show your work. (2 points) If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how much would he profit if he has $1,000,000 available for this purpose? Do not round intermediate calculations. Round your final answer to 2 decimal places. (4 points)
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