Use the following information to answer the following 3 questions

Direct Market for C$/INR Bids asks

Deutsche Banks quote: C$.0855/INR C$.0865/INR

Barclays quote: C$.0857/INR C$.0864/INR

CSFBs quote: C$.0860/INR C$.0871/INR

Markets for INR/$ and C$/$

dollar bids dollar asks CAD bids CAD asks

Deutsche Banks quote: INR 13.0/$ INR 13.3/$ $.865/C$ $.871/C$

Barclays quote: INR 13.1/$ INR 13.5/$ $.866/C$ $.872/C$

CSFBs quote: INR 13.2/$ INR 13.35/$ $.867/C$ $.875/C$

1. What is the best direct C$/INR ask price? Compute the best indirect C$/INR bid price. (These are the clockwise numbers)

2. What is the best direct C$/INR bid? Compute the best indirect C$/INR ask price. (These are the counter-clockwise numbers)

3. Determine if there is a triangular arbitrage opportunity. (Look clockwise and counter-clockwise) If there is an arbitrage opportunity, do it! How much risk-free arbitrage profit is there if you start with $1,000,000 and make one trip around the triangle?