QUESTION 5 An investment banker has $12,000,000 to invest in the foreign currency market. The dollar-euro exchange rate is quoted as 51 50/ and the dollar-pound exchange rate is quoted at $1.25/. If a bank quotes a cross rate of 80/, how much money can she make in terms of dollars) via triangular arbitrage if she is charged a 3% interest rate on borrowed funds Round intermediate steps to four decimals. 00 O 500.000 5.640,000 140.000 O 6.000.000 QUESTION Based on the information provided in the previous question, which of the following wil occur to eliminate the arbitrage opportunity? The euro will appreciate against the dollar The pound will appreciate against the dollar The pound will depreciate against the euro No change is necessary since triangular arbitrage is not possible None of the above