Question 1:\ Lets assume that there are no bid ask spreads in the quotes in Figure 1 in the next page.\ 1a/ For each each exchange rate (that is, each currency pair) listed in Figure 1 in the next page,\ draw an arrow diagram representing that exchange rate (using the convention described in\ Lecture Note 2).\ 1b/ Using only the information in Figure 1, infer the exchange rates of all other currencies in that\ Figure quoted against Australian Dollar (AUD) such that AUD is the numeraire currency\ in these exchange rates.\ 1\ Figure 1: Exchange Rate Quotes\ 1c/ Suppose that in the market, the direct quote for the exchange rate between Canadian dollar\ and Hong Kong dollae is (assuming no bid ask spreads): CAD-HKD 5.522\ Using USD as the numeraire currency: Do arbitrage opportunities exist among three cur-\ rencies {USD, CAD, HKD}. If yes, how much arbitrage money one can make per 1000\ USD?\ Using HKD as the numeraire currency: Do arbitrage opportunities exist among three cur-\ rencies {USD, CAD, HKD}. If yes, how much arbitrage money one can make per 1 million\ HKD?