Suppose the pound is pegged to gold at 5 pound per ounce, whereas the German Mark is pegged to gold at 15 Mark per ounce.

Currently the market exchange rate is 2.5 Mark per pound.

1. What is the implied exchange rate between German Mark and pound? Answer: 1 pound = German Mark (Please write your answer in whole German Mark. Enter just the number without the currency unit).

2. Which of the following strategy will take advantage of this situation? Suppose you are a UK investor and start with 1,500 pound.

3.What is your arbitrage profit (in pound)? Suppose you are a UK investor and start with 1,500 pound Please round your answers to whole pound.