Use the following information to answer question a, b & c

We observe the following exchange rates,

Bank A: 115.61/

Bank B: $0.8908/

Bank C: 129.87/$

QA. Based on the quotations in Bank B and Bank C what is the cross rate between and ?

A) 0.010644

B) 0.009464

C) 114.7882/

D) 115.6882/

QB. Which currency is priced higher or lower by comparing the above-computed cross rate with the quotation in Bank A?

A) is priced higher in bank A

B) is priced lower in bank A

C) is priced lower in bank A

D) All of the above

QC. If you have one million US dollar to explore the arbitrage opportunity, what will be the arbitrage profit?

		A) $54,300
		B) $3,200
		C) $600
		D) $2