Problem $5\mathrm{.}11$

Doug Bernard specializes in cross$-$rate arbitrage. He notices the following quotes:

Swiss franc$/$dollar $=$ SFr$1\mathrm{.}6079/$$

Australian dollar$/$U$.$S$.$ dollar $=$ A$$1\mathrm{.}8358/$$

Australian dollar$/$Swiss franc $=$ A$$1\mathrm{.}1524/$SFr

Required:

Ignoring transaction costs,

Does Doug Bernard have an arbitrage opportunity based on these quotes?

How much would he profit if he has $$1,000,000$ available for this purpose?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

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Doug Bernard specializes in cross$-$rate arbitrage. He notices the following quotes:

Swiss franc$/$dollar $=$ SFr$1\mathrm{.}6079/$$

Australian dollar$/$U$.$S$.$ dollar $=$ A$$1\mathrm{.}8358/$$

Australian dollar$/$Swiss franc $=$ A$$1\mathrm{.}1524/$SFr

Required:

Ignoring transaction costs,

a$.$ Does Doug Bernard have an arbitrage opportunity based on these quotes?

Does Doug Bernard have an arbitrage opportunity based on these quotes?

b$.$ How much would he profit if he has $$1,000,000$ available for this purpose?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Arbitrage profit