Question $4$

A currency trader receives the following quotes for spot exchange change rates in American

terms.

$$0\mathrm{.}7449/$ Singapore Dollar

$$\frac{1\mathrm{.}0789}{?}$ Euro

Euro $0\mathrm{.}6735/$Singapore Dollar

Is there any arbitrage opportunity? For simplicity, ignore the bid$-$ask spread.

Assume the trader has $$10,000,000$ to start with, what is the total arbitrage profit denominated in

the US dollar and show the transaction details?