1 Arbitrage 25 points a) (5 points) Simple arbitrage: Suppose that the spot exchange rate is 1.35/S in Singapore and 1.33/9S in Tokyo. Explain the process you would use to make money from this discrepancy. b) (4 points) How much profit could you make in the above situation if you have S10,000? c) (5 points) Would you make the same amount of profit if one of the prices quoted above was a forward market rate for 6 months from now? d) (6 points) If you saw the following information, explain the process you would use to make money from this situation assuming that vou have US dollars right now eur to usd ellings To BITCOIN EXCHANGE YOU CAN TRUST Euro equals 1.20 US Dollar REGISTER 1 Euro 1.2 1.20 US Dollar User Registrations Are Temporarily Suspended Read More Dsciaimer XE: Convert EUR/USD. Euro Member Countries to United States Dollar www.e.ccm , XE Currency Correer ter-Li" Rates EUR to USD cumcncy converrer Gct Ive cxchange ratcstor Euro Micmber Coumtrics to United States BITCOIN PRICE 1584116 USD EUR to USD Exchange Rate Bloomberg Markets hrtpa:lwww.bloombag.com/quote/EURUSD CUR Curtenl exchange rale EURO EUR) to US DOLLAR (USDiclucing currenty converter, buying&sellin rabe anc historicall conwerslon chart In case you have trouble reading the image above, the exchange rates are: $1.20/, 15,841.16 S/BTC, and 12,398.98 /BTC. e) (3 points) Why do you think it was possible for a situation like the one in the previous part to exist? f) (2 points) How much profit could you make in the above situation if you have S10,000? 1 Arbitrage 25 points a) (5 points) Simple arbitrage: Suppose that the spot exchange rate is 1.35/S in Singapore and 1.33/9S in Tokyo. Explain the process you would use to make money from this discrepancy. b) (4 points) How much profit could you make in the above situation if you have S10,000? c) (5 points) Would you make the same amount of profit if one of the prices quoted above was a forward market rate for 6 months from now? d) (6 points) If you saw the following information, explain the process you would use to make money from this situation assuming that vou have US dollars right now eur to usd ellings To BITCOIN EXCHANGE YOU CAN TRUST Euro equals 1.20 US Dollar REGISTER 1 Euro 1.2 1.20 US Dollar User Registrations Are Temporarily Suspended Read More Dsciaimer XE: Convert EUR/USD. Euro Member Countries to United States Dollar www.e.ccm , XE Currency Correer ter-Li" Rates EUR to USD cumcncy converrer Gct Ive cxchange ratcstor Euro Micmber Coumtrics to United States BITCOIN PRICE 1584116 USD EUR to USD Exchange Rate Bloomberg Markets hrtpa:lwww.bloombag.com/quote/EURUSD CUR Curtenl exchange rale EURO EUR) to US DOLLAR (USDiclucing currenty converter, buying&sellin rabe anc historicall conwerslon chart In case you have trouble reading the image above, the exchange rates are: $1.20/, 15,841.16 S/BTC, and 12,398.98 /BTC. e) (3 points) Why do you think it was possible for a situation like the one in the previous part to exist? f) (2 points) How much profit could you make in the above situation if you have S10,000