Problem 2.

Suppose Citi bank was quoting a Japanese yen per dollar exchange rate of $:=128.17, Bank of America was quoting a Japanese yen per pound rate of :=183, and JP Morgan was quoting dollar per pound exchange rate of :$=1.4570. Was there an arbitrage opportunity here, ignoring transaction costs? If there was an arbitrage opportunity, what steps would you have taken to make an arbitrage profit, and how much would you have profited with $1 million available for this purpose?