Question 1 Suppose you observe the following quotes: London $1.5/ New York - 1.2/\$ Amsterdam - 2.0/ Is there a Triangular Arbitrage opportunity? If so, how can you make money if you were an American investor with $1000 to invest? What is the percentage return on capital for the American investor if there was a profit? What about if you were a British investor with 500 ? Question 2 Assume you observe the last traded prices across multiple banks of the following currencies. Is Locational Arbitrage possible? If so, explain the steps involved in Locational Arbitrage and compute the profit from this arbitrage if you had 10,000 to use. What market forces would occur to eliminate any further possibilities of locational arbitrage? Question 1 Suppose you observe the following quotes: London $1.5/ New York - 1.2/\$ Amsterdam 2.0/ Is there a Triangular Arbitrage opportunity? If so, how can you make money if you were an American investor with $1000 to invest? What is the percentage return on capital for the American investor if there was a profit? What about if you were a British investor with 500