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You specialize in cross-rate arbitrage and notice the following quotes: - S($/euro): $1.0115/EUR - S($/MXN):$0.053/MXN - S(MXN/euro): MXN20.1505/EUR 1. Do you have an arbitrage opportunity?

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You specialize in cross-rate arbitrage and notice the following quotes: - S(\$/euro): \$1.0115/EUR - S($/MXN):$0.053/MXN - S(MXN/euro): MXN20.1505/EUR 1. Do you have an arbitrage opportunity? Prove it. (3 points) 2. If yes, how much is your arbitrage profit if you have $5,000,000 for this purpose? (7 points) 3. What MXN/EUR rate will eliminate an arbitrage opportunity? (5 points)

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