1. You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as 1.50$/ and the dollar-pound exchange rate is quoted at 2.10$/. If a bank quotes you a cross rate of 1.53/, how can you make money? [Hint: This is a difficult question, so you may want to come back to this question later if you are running out of time.]

   		buy $ at $1.50/, then buy at $2.10/, then buy at 1.53/.
   		buy at $1.50/, then buy at 1.53/, then buy $ at $2.10/.
   		buy at $2.10/, then buy at 1.53/, then buy $ at $1.50/.
   		buy at 1.53/, then buy at $1.50/, then buy $ at $2.10/.