Problem 1 (Locational Arbitrage) Assume the following information, Beal Bank Ask price of NZD USD 0.404 Bid price of NZD USD 0.401 Yardley Bank USD 0.400 USD 0.398 Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you have USD 1 million to use. What market forces would occur to eliminate any further possibilities of locational arbitrage? Problem 2 (Triangular Arbitrage) Assume the following information, Exchange Rates SUSD/CAD Quoted Price USD 0.90 / CAD USD 0.30 / NZD NZD 3.02 / CAD USD/NZD SNZD/CAD Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had USD 1 million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage