Question background: recently, digital currency, i.e., Bitcoin, became more popular because of its transparency, security, and irreversibility. Bitcoin is transparent because it is a decentralised book-keeping currency system, which means everyone is bookkeeper. All transactions are publicised and packaged as \"block\". Multiple blocks consist of \"chains\". So, we call them block-chain. Transactions are irreversible because once occurred, everyone puts it on the account book, so it cannot be reversed. It is also safe because if you attempt to steal Bitcoin from another one, nobody confesses that transaction, so the stealing transaction is invalid. The Bitcoin supply is limited (approximately 21million Bitcoin in total). People can earn Bitcoin by packaging transactions and only one person can succeed through Hash function calculation. The process is called \"mining\". However, the more people join in mining, the less probability of successful mining occurs due to limited supply. During the transaction, there is little fee and no exchange rate or bid-ask spread for international transaction. Below is a monthly exchange rate data from 1/8/2020 to 1/7/2021. USD/BTC stands for price in USD per Bitcoin and AUD/BTC stands for price in AUD per bitcoin. Date High Low Close Volume High Low Close Volume AUD/BTC (Billion) USD/BTC (Billion) 1/07/2021 47,752 41,670 42,002 632 35,938 30,564 30,818 472 1/06/2021 53,745 38,492 46,739 1,558 41,295 28,894 35,041 1,190 1/05/2021 76,343 39,622 48,213 2,547 59,519 30,681 37,333 1,977 1/04/2021 84,3 53 60,840 74,835 2,396 64,863 47,159 57,750 1,844 1/03/2021 79,497 58,205 77,586 2,183 61,684 45,115 58,919 1,681 1/ 02/2021 74,127 42,434 58,221 2,924 58,331 32,384 45,138 2,267 1/01/2021 54,023 37,134 43,454 2,794 41,947 28,723 33,114 2,156 1/12/2020 3 8,025 23,402 37,669 1,605 29,245 17,620 29,002 1,212 1/11/2020 26,764 18,809 26,676 1,500 19,749 13,243 19,626 1,093 1/10/2020 19,958 14,617 19,606 1,052 14,028 10,440 13,781 748 1/09/2020 16,363 13,619 15,056 1,234 12,067 9,916 10,788 894 1/08/2020 17,139 15,411 15,834 984 12,359 11,012 11,681 708 Data are extracted from Yahoo Finance. Question: On 1/7/2021, the spot rate quotation from a foreign exchange dealer was AUD1.33618/U SD. Based on above table closing price column, is there any arbitrage opportunity? As an Australian investor who owns AUD1,000,000 ONLY, how much net prot can be generated 'om arbitrage? (Assuming there is no transaction cost or tax. No borrowing is allowed. Please upload your answer.)
