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Suppose you observes the following quotation: Bank Quotations American Terms European Terms Bld Ask Bld Ask $1.2000 $1.2550 0.7968 0.8333 Bank A $/ Bank B

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Suppose you observes the following quotation: Bank Quotations American Terms European Terms Bld Ask Bld Ask $1.2000 $1.2550 0.7968 0.8333 Bank A $/ Bank B $/ Bank C / $1.0510 $1.0530 0.9496 0.9514 1.200 / 1.2050/ From the above data you have to find the following: 1. No arbitrage / cross bld rate? (2 Marks) 2. No arbitrage / cross Ask rate? (2 Marks) 3. Suppose you starting with 10,000, how can you make money? How much the arbitrage profit? (3 Marks) 4. Suppose you starting with 10,000, how you can make money? How much the arbitrage profit

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