The dollar-euro exchange rate is quoted as $1.50/ and the dollar-pound exchange rate is quoted at $2.00/.

If a bank broker gives you a rate of 1.20/.

You have $100 to invest.

a) (5 points) What is the cross rate of (/)?

b) (5 points) The underpriced currency is ____________ and the overpriced currency is __________. Fill in the blanks.

c) (5 points) Provide your triangle arbitrage strategy with a $100 investment in detail.

d) (5 points) What is your arbitrage profit($)?