Question: 8. Triangular Arbitrage a) Is there any triangular arbitrage opportunity if you observe the following bid and ask quotes? (5 marks) oUS$1.1408-15/oUS$1.5402-10/o0.7435-42/ b) Again, what

8. Triangular Arbitrage a) Is there any triangular arbitrage opportunity if you observe the following bid and ask quotes? (5 marks) oUS$1.1408-15/oUS$1.5402-10/o0.7435-42/ b) Again, what will be market movements in FX rate? (5 marks) c) When will no-arbitrage condition hold again

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