Show all your work, write your answers in your handwriting, and submit the homework in class or to instructor's office. The instructor does not accept typed answers. Each question is worth 10 points I. Suppose that you are a dealer at CitiBank. Your duty is to make a profit through financial transactions. Sometimes, the foreign exchange market generates a risk free profit due to a market discrepancy. In other words, a dealer's ask price is not consistent with a financial axiom: buy low and sell high. This practice will be a boon to an individual who constantly observe the FX market. Please take a look at the following dealers price quotation for currencies. Since you are an active trader at CitiBank, the bank is allowed for you to use $5,000,000 for a FX trading today. Nomura Bank: S (W/S)-L,125.81 Credit Suisse: S(S)-0.008967 Gookmin Bank: s (Wny)-10.1000 1. Is there any arbitrage profit? Explain. (10 points) 2. Show the steps you would do to explore an arbitrage profit if any (5 points) lPage