The Singapore dollar$$U$.$S$.$ dollar $($S$$/$$$)$ spot exchange rate is S$$10/$$$,$ the Canadian dollar$$U$.$S$.$ dollar $($CD$/$$$)$ spot rate is CD $5/$$$,$ and the Singapore dollar$-$Canadian dollar spot exchange rate is S$ $1\mathrm{.}80/$CD$.$

Figure out the correct cross exchange rate for Singapore dollar against Canadian dollar $($S$$/$CD$)$ that eliminates a triangular arbitrage. $(20$points$)$

You plan to exploit the triangular arbitrage opportunity when you have $$10$ mil. to invest.

Given the difference between the spot market exchange rate and the correct cross exchange rate, which currency is underpriced$/$undervalued on the spot market? Canadian dollar or Singapore dollar? $(20$points$)$

How many Singapore dollars can you buy or sell in exchange for Canadian dollar when you exploit the arbitrage opportunity using $$10$mil.? $(20$points$)$

Figure out your profit in U$.$S$.$ dollar. $(30$points$)$