Suppose the pound sterling is offered at S($/) 1.9422 in New York. The euro is offered at S($/) 1.4925 in Frankfurt. London banks are offering pounds sterling at S(/) 1.2998. a) Does a profitable arbitrage opportunity exist? Is so, how can the opportunity be exploited (Specifically describe the steps that should be taken)? b) What arbitrage profit, if any, can be earned on an initial investment of $1,000,000?