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Suppose you observe the following exchange rates: 1=$.85;1=$1.60; and 2.00= 1.00. Starting with $1,000,000, how can you make money? What are your arbitrage profits? (6

Suppose you observe the following exchange rates: 1=$.85;1=$1.60; and 2.00= 1.00. Starting with $1,000,000, how can you make money? What are your arbitrage profits? (6 points)

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