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Question 8 Suppose you observe the following exchange rates in the foreign exchange markets: $ 1 = $ 1 2 9 . 1 2 ,

Question 8
Suppose you observe the following exchange rates in the foreign exchange markets:
$1=$129.12,60.8995=$1, and Japanese yen and euro cross rate as 1=60.0068.
Suppose you have $10,000 in your pocket. What is your arbitrage profit, if any? (Hint: Arbitrage profle cannot be a negative amount.)
(Please write the $, Euro, and JPY before or after the amount or the rate to indicate which rate or which currency you are talking about.)
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