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Use the following information for Q1 and Q2. Suppose you are the manager of the finance department of a trading company. Your company needs to

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Use the following information for Q1 and Q2. Suppose you are the manager of the finance department of a trading company. Your company needs to purchase and sell foreign currencies for the importing and exporting business. This morning you receive the following foreign exchange quotations from 3 brokers. Broker A : CADO.8720 per NZD Broker B : CAD1.2813 per USD Broker C: USD0.6868 per NZD CAD = Canadian Dollar USD = US Dollar NZD - New Zealand Dollar Suppose your company has USD1 million. Question 1 Determine if there is arbitrage opportunity. Explain your answer. Question 2 If there is arbitrage opportunity, show how your company can make arbitrage profit from the quotations of the 3 brokers. Calculate the amount of arbitrage profit your company can make

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