Suppose you observe the following quotes:

SF per US $ = SF 1.9025/US $

CDN $ per US $ = 1.2646/US $

SF per CDN $ = SF 1.5214/C$ (quoted cross rate)

• Calculate the implied Cross Rate between SF and CDN $
• If the implied cross rate is not equal to the quoted cross rate show how you can make a triangular currency arbitrage profit with SF 1 million

Please show steps!