Problem 1 The central bank of South Korea announces every business day at 9:00 a.m. a fixed rate at which it will buy or sell US dollars throughout the trading day. No such commitments are made, however, against other major trading currencies. . On August 9, 1990, the following rates were set at 9:00 a.m.: US$1 = KRW 715. Quotes for the cross-rates USS/ indicated 150. Thirty minutes later, the Japanese yen had appreciated to 148 for US$1. . a. Explain how the treasurer of Samsung, one of the leading South Korean industrial conglomerates, could profit from the new situation at 9:30 a.m. As the central banker of South Korea, explain how you could prevent such arbitrage profits-short of imposing controls on foreign exchange dealings. Assuming that the central bank buying and selling rates are, respectively, 714 and 716 and that bid-ask rates on US$ versus Y are 148.20 and 147.80, what would be your answer to question (a)