Using the following quotations: EUR/USD 1.0716/1.0729 GBP/USD 1.2516/1.2529 EUR/GBP 0.8560 / 0.8574 (British Pound, U.S. Dollar, Euros) With 10,000 USD, look for triangular arbitrage opportunities. What are the results of your attempts? NOTE: You must check two different alternatives - answer as part (a) and then part (b). Answer is to be in USD (how much currency do you have after the series of transactions). You must be accurate to 2 decimal places. An Australian exporting company is receiving 30m GBP in two years' time. The current spot rate is AUD/GBP 0.5756 / 0.5774. Australian investment interest rates are currently at 0.85% p.a. and U.K. interest rates are at 1.0% p.a. The net interest rate spread in both countries is 3.5% (read this as the borrowing rates are 3.5% higher than the given investment rates above). Design a money market hedge which will remove the FX risk faced by the Australian company, yet not altering the timing of the payment. Clearly state the AUD cash flow in the future