a) Distinguish between Covered interest Arbitrage and Triangular Arbitrage. (5 marks)

b) You are given these quotes by your bank.

You can sell United States dollars ($) to the bank for 5.10 cedis per $

You can buy United States dollars from the bank for 5.15 cedis per $

The bank is willing to buy euros for 5.75 cedis per euro

The bank is willing to sell euros for 5.85 cedis per euro

The bank is willing to buy Euros for United States dollars for $1.05 per euro

The bank is willing to sell Euros for United States dollars for $1.10 per euro

You have $10,000 and looking to make risk free income

Estimate your profit or loss if you attempt a triangular arbitrage by converting your dollars to Euros, and then convert Euros to Ghanaian Cedis, then convert Ghanaian Cedis to United States dollars