Question: NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks 11- When SFR / $ = 1.0814 / 1.0865 and / $ =

NOTE: Please answer both multiple-choice otherwise don't answer. explain your choice. Thanks

11- When SFR / $ = 1.0814 / 1.0865 and / $ = 1.1893 / 1.1905, what is the value of / SFR parity?

A) 1.0814/05

B) 1.1749/35

C) 1.0946/09

D) 0.9093/26

E) 1.2874/22

12- Suppose the pound sterling is bid at $1.3907 in New York and the euro is offered at $1.1893 in Frankfurt. At the same time, London banks are offering pounds sterling at 1.1524. A trader has $1,000,000. How much profit would the trader make from triangular arbitrage if he started trading in Frankfurt by selling dollars for euros?

A) $ 152,400

B) $ 22,665.65

C) $ 0

D) $ 14,702.63

E) $ 9,169.25

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