Suppose you observe the following rates:

1= $2.4110 (New York)

$1=F F3.997 (Paris)

F F1=0.1088 (London)

(a) You have5. Could you take profitable advantage of these rates? Describe yourstrategy and compute the arbitrage profit.

(b) You have $5. Could you take profitable advantage of these rates? Describe yourstrategy and compute the arbitrage profit.

(c) You have FF 5. Could you take profitable advantage of these rates? Describe yourstrategy and compute the arbitrage profit.