PROBLEM 1: Suppose Bank One gives the following quotes: 150 JPY/USD 2.40 USD/GBP 210 JPY/GBP Depending on these quotes, show whether there is a triangular arbitrage opportunity,If there is and you have 2,000,000 JPY on hand, how would you conduct your arbitrage strategy and what would be the amount of arbitrage that can be made? PROBLEM 2; Following quotes are given by Banks A, B, and C: (You may either buy or sell at the stated rates). Bank A x106.6/$ Bank B $2.08/E Bank C x166.4/E Assume you have an initial x100,000,000. Can you make a profit via triangular arbitrage? If so, show steps and calculate the amount of profit in Japanese yen. PROBLEM 3: You are the Financial Manager of the Trading Division of Eager Foreign Exchange Division. Your Latin American Division in Houston is providing you the following quotations: (You may either buy or sell at the stated rates). Bank of New York: Peso 10.00/$ Bank of Cancun: Sol 0.33/ Peso Bank of Lima: $0.33/Sol Assume you have an initial wealth of $1,000,000 U.S. dollars in U.S.A. Is Triangular Arbitrage Possible with Latin American Currencies? If so, compute Eager's profits