The euro and U.S. dollar, S(USD/EUR), spot exchange rate is 1.1108. The Japanese yen and U.S. dollar S(JPY/USD) spot exchange rate is 113. If market is quoting the Japanese yen and euro, S(JPY/EUR) spot exchange rate at 123.25, determine if triangular arbitrage exists. If it does, how much can you profit (in US dollar) if you can borrow up to $1,000,000 without any transaction cost? Be sure to answer the following questions: a. What is the implied cross-exchange rate between Japanese yen and euro, S(JPY/EUR)? b. Is there arbitrage opportunity? Why or why not? C. If there is arbitrage opportunity, state clearly each step necessary to capture the profit. In each step, state which currency you buy and sell and include the amount of each currency with currency its symbol. d. How much is the arbitrage profit in US dollar