Question: 2. Given the following three currency quotes given by a Swiss bank and a London bank: $1.0840/SF0.8864/SF0.8475/S Please answer parts (a) and (b) in the

2. Given the following three currency quotes given by a Swiss bank and a London bank: $1.0840/SF0.8864/SF0.8475/S 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 (do not inverse any of the inputs (given quotes). If need be you inverse an output (an answer). b. Starting with a nominal $42 million, show by explaining the transactions and by calculations how much arbitrage profit (if any) you can make by trading the currencies at the given rates

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