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You are working as a corporate treasurer and observe the following two exchange rates Citibank NYC $ 1 . 1 1 0 1 8 /

You are working as a corporate treasurer and observe the following two exchange rates Citibank NYC $1.11018/
Barclays London $ 1.13439/
a. Explain how you could make an arbitrage (risk-free) profit using binary arbitrage.
b. What is the total profit you could earn with $2 million of capital?
c. List at least three reasons that this profit would likely not be truly available to you as
an investor?

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