Problem $4$

Given the following quotations define the exchange rate between Canadian dollar and British

pound under direct quotation in Canada.

$C\frac{\text{\$}}{\text{\$}}=1\mathrm{.}3595-1\mathrm{.}3604$

$\frac{}{\text{\$}}=0\mathrm{.}79126-0\mathrm{.}80112$

Problem $5$

The quotation in Brazil is BRL $/$ USD $=5\mathrm{.}0665-5\mathrm{.}0815.$ A US resident is undertaking exchange

rate arbitrage and faces the following quotation in her domestic market: USD $/$ BRL $=0\mathrm{.}18455-$

$0\mathrm{.}19012.$ Is there a possibility of getting the risk$-$free profit in this case? If so $-$ explain how using

the step$-$by$-$step approach.