The following are quotes for several U.S. currency dealers.

Dealer	A	B	C	D	E
Japanese yen	108.98 - 109.00	109.02 - 109.06	108.99 - 109.02	109.01 - 109.05	108.97 - 109.01
British pounds	1.2374 - 1.2376	1.2376 - 1.2378	1.2378 - 1.2381	1.2376 - 1.2378	1.2373 - 1.2375

Triangular arbitrage (Inter-market) - assume that the highest bid and lowest ask for each currency are equal (so that the bid-ask spread is zero)

The New York spot exchange rate for the euro (EUR/ USD) is 1.2380 and the spot exchange rate for the Australian dollar (AUD/USD) is 0.8094. What must the spot exchange rate for the Australian dollar in Frankfurt (EUR/AUD) be if no arbitrage opportunity exists?

Using the New York market spot exchange rates from the previous questions, if, in Frankfurt, the exchange rate for the Australian dollar is 1.5289, what trades should you make to take advantage of the arbitrage opportunity? For each transaction, be specific about where the trade takes place, which currency you would purchase (or sell) and which currency you would use to pay (or receive)

How profitable is a round trip trade? State the profitability either in percent or basis points.