On 6 October 2021, the quotes in the table below were made available by FNB of SA Ltd., ABSA Bank Ltd. and ABC International Bank in UK. You are of the opinion that the rates as presented here may provide an opportunity for you to make a riskless profit by trading on the S(/) exchange rate through one of the South African banks. You have R1,000,000 (i.e., one million South African Rand) to invest.

FNB SA	ABSA	ABC Int. Bank (UK)
S(R/ ) =17.3065	S(/R) = 0.05721	S(/)= 1.1622
S((R/) = 20.5673	S(R/) =20.5461

(a) Suggest which of the two South African banks you would prefer to deal with and state

why you would choose this bank. (7 marks)

(b) In order to make a riskless profit, there is a strict process which the trade must follow

once you have chosen the South African Bank you wish to deal with. Explain each of the

steps in this process and supplement this explanation with appropriate calculations to

show how much profit you would have made. (7 marks)