Question 5 [8 marks). Consider the upcoming England vs Montenegro football match, for which a bookmaker is quoting the following odds: Outcome Odds England win 3/1 Draw 3/1 Montenegro win 4/1 (a) By doing a calculation with the odds, show that an arbitrage opportunity exists. [3] (b) A betting strategy is a vector (x,y,z), where x is bet on England winning, y is bet on a draw, and z is bet on Montenegro winning. Show that (1,1,2) is betting strategy giving an arbitrage opportunity. [5] Question 5 [8 marks). Consider the upcoming England vs Montenegro football match, for which a bookmaker is quoting the following odds: Outcome Odds England win 3/1 Draw 3/1 Montenegro win 4/1 (a) By doing a calculation with the odds, show that an arbitrage opportunity exists. [3] (b) A betting strategy is a vector (x,y,z), where x is bet on England winning, y is bet on a draw, and z is bet on Montenegro winning. Show that (1,1,2) is betting strategy giving an arbitrage opportunity. [5]