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You are financial manager with $1M USD to invest. The dollar-euro exchange rate is quoted as $1.20 = 1.00 and the dollar-pound exchange rate is

You are financial manager with $1M USD to invest. The dollar-euro exchange rate is quoted as $1.20 = 1.00 and the dollar-pound exchange rate is quoted at $1.80 = 1.00. If a bank quotes you a cross rate of 1.00 = 1.50, is there an opportunity for you to earn a risk-free profit with these quotes? If so, what is your profit and return?

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