PROBLEM 3 (6 POINTS) Japanese Yen to Indian Rupee Euro to US Dollar Australian Dollar to Pound Brazilian Real to Pound Australian Dollar to US Dollar Brazilian Real to Japanese Yen a.) Determine the implied INR/EUR cross rate. (2 POINTS) 1.79 JPY/1 INR 0.95 EUR/1 USD 1.92 AUD/1 GBP 6.23 BRL/1 GBP 1.58 AUD/1 USD 0.034 BRL/1 JPY b.) Suppose that the INR to EUR exchange rate is 82 INR/1 EUR. Is there any arbitrage opportunity? If so, start in INR and explain in words why you think that is the case and the steps to achieve this. (2 POINTS) c.) Assume you have 12,000 EUR. What is your profit in EUR (show your calculations)? (2 POINTS)

PROBLEM 3 (6 POINTS) a.) Determine the implied INR/EUR cross rate. (2 POINTS) b.) Suppose that the INR to EUR exchange rate is 82 INR/1 EUR. Is there any arbitrage opportunity? If so, start in INR and explain in words why you think that is the case and the steps to achieve this. (2 POINTS) c.) Assume you have 12,000 EUR. What is your profit in EUR (show your calculations)? (2 POINTS)