You specialize in cross-rate arbitrage. You notice the following quotes: The Swiss Franc-U.S. Dollar exchange rate is quoted at SFr1.60 = $1.00 and the Australian Dollar-U.S. Dollar exchange rate is quoted at A$1.82 = $1.00. Assume a bank quotes you a cross rate of A$1.18 = SFr1.00. Ignoring transaction costs:

A)If an arbitrage opportunity exists, what transactions would you undertake to secure the arbitrage profit?

B)How much would your profit be if you have $1,000,000 available for this purpose?