Suppose that Goldman Sachs (GS), Morgan Stanley (MS), and Band of America (BA) provide the following quotes for the Swiss Franc (CHF) 1. GS USD/CHF 1.081025 2. MS USD/CHF 1.078592 3. BA USD/CHF 1.0790-821 Questions (1) Is there an arbitrage opportunity in these quotes? Answer: Choose one of the following answers: A, B, C or D A= Between GS and MS B= Between GS and BA C= Between MS and BA D= There are no arbitrage opportunities (2) If there is an arbitrage opportunity in the quotes what is the profit a trader could make risk-free if she could borrow CHF 1 million? Answer: Choose one of the following answers: A, B, C or D A= There are no arbitrage opportunities, so no risk-free profits B=CHF1,667.9C=CHF1,396.67D=CHF1,272.35 (3) If a trader wants to buy CHF, which of the dealers offers the most attractive rate? Answer: Choose one of the following answers: A, B, or C A=GSB=MSC=BA (4) If a trader wants to sell CHF, which of the dealers offers the most attractive rate? Answer: Choose one of the following answers: A, B, or C A=GSB=MSC=BA