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QUESTION 1 (20 MARKS) (a) Given the below Bid and Ask spread for EUR/MYR, convert MYR15,000 to Euro. Bid 4.8671 Ask 4.8700 (4 marks) (b)

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QUESTION 1 (20 MARKS) (a) Given the below Bid and Ask spread for EUR/MYR, convert MYR15,000 to Euro. Bid 4.8671 Ask 4.8700 (4 marks) (b) Given the following exchange rate in Singapore and Malaysia: SGD/MYR = 3.0800 (Singapore) SGD/THB = 23.2400 (Singapore) MYR/THB = 7.5210 (Malaysia) i, Calculate if there is any arbitrage opportunity. (4 marks) ii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment starts with MYR500,000. (10 marks) iii. Conclude your answer in (b) above. (2 marks) Page 2 of 8

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