Solve the following questions.

For each of the following, state whether or not there is an arbitrage opportunity. (i) An individual wishing to make a telephone call is desperate for some small change and so offers you a five pound note in return for four pounds of small change. (ii) USA are playing Luxembourg in a basketball match. A friend is so confident in his team that he says that he will pay you $400 if USA lose. (iii) Coventry City football club has just paid $800,000 for a Croatian footballer. Real Madrid of Spain is happy to pay $4m for the same player. (iv) A friend offers to pay you $100 if one roll of a fair dice is a six. If it is a one, two, three, four or five you will have to pay her f1. (v) As (iv) but another friend is also prepared to pay you, based on a subsequent roll of the same dice, f1 for a one, (2 for a two, $3 for a three, $4 for a four, $5 for a five and you must pay him $12 for a six. (vi) As (v) but the friends are prepared to make the above payments on the same roll of a dice. (vii) Lend fl for six months, receive $1.05 back with no risk of default and simultaneously borrow fl for six months, paying $1.04 back.Assume now that at some time , 0