1. (Ch, 7) Triangular Arbitrage. Assume the following information: S1=.62 in AUDUSD S1=1.12 in GBPUSD S1=1.82 in GBPAUD Where GBP is the British pound, AUD is the Australian dollar, and USD is the U.S, dollar. Is triangular arbitrage possible? ( 5 points) If so, explain the steps that would reflect triangular arbitruge, and compute the profit from this strategy (expressed as a% per unit borrowed): (20 points) What market forces would occur to eliminate any further possibilitics of triangular arbitrage? (8 points) 2. (Ch. 7) Covered Interest Arbitrage. Assume the following market quotes information: Si=1.1100 in GBPUSD Foxdy =1.1115 in GBPUSD tasp =0.75% tuxn 3.75 T=30 days The 30-day nominal interest rates above are quoted in annualized terms; Given these market quotes information, is covered interest arbitrage possible? (6 points) Devign a covered arbitrage strategy and calculate its profits. ( 12 points)