Question: (a) Explain locational arbitrage. (4 marks) (b) Given the following exchange rate in Malaysia and Korea: i. Determine any arbitrage opportunity. (4 marks) ii. Calculate

(a) Explain locational arbitrage. (4 marks) (b) Given the following exchange

(a) Explain locational arbitrage. (4 marks) (b) Given the following exchange rate in Malaysia and Korea: i. Determine any arbitrage opportunity. (4 marks) ii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment starts with KRW5,000,000. (10 marks) iii. Conclude your answer in (b) above. (2 marks)

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