Question: 2. Given the following three currency quotes given by a Tokyo bank and a London bank: 112.14/5 141.92/ 0.7862/5 Please answer parts (a) and (b)

2. Given the following three currency quotes given by a Tokyo bank and a London bank: 112.14/5 141.92/ 0.7862/5 Please answer parts (a) and (b) in the order they are given a. Show whether there is an arbitrage opportunity implied in these three quotes. b. Starting with a nominal $32 million, show how much arbitrage profit (if any) you can make by trading the currencies at the given rates. Part

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