Question 4 10 pts The table below presents quotes and cross-quotes on BP and SF. Price for BP in New Price for SF in Price for SF in York (in $) Chicago (in $) London (in BP) $ 1.725 for 1 BP $ 0.645 for 1 SF BP 0.365 for 1 SF The three steps which will create triangular arbitrage profit are as follows: first step, convert ____; second step, convert_ _, and third step, convert O $ to BP; BP to SF; SF to $ $ to SF; SF to BP; BP to $ O $ to BP; SF to BP; SF to $ $ to SF; BP to SF; BP to $ 80 FS F4 FS 44Question 5 10 pts The table below presents quotes and cross-quotes on BP and SF. Price for BP in New Price for SF in Price for BP in York ( in $) Chicago (in $) London (in SF) $ 1.725 for 1 BP $ 0.645 for 1 SF |SF 2.55 for 1 BP If the speculator has access to $10,000,000, calculate the maximum profit in one triangular transaction. O $ 14,363,235 O $ 543,417 O $ 487,916 $ 465,217 80 FS 44 F7Question 1 10 pts The table below presents bid-ask quotes for Euro (EUR) from several currency dealers around the world. Currency Dealer in London Hong Kong Zurich New York Bid/Ask Quotes for EUR $1.3454-60 $1.3450-61 $1.3462-65 $1.3459-66 In order to take advantage of locational arbitrage, a currency speculator should buy EUR from the dealer and sell EUR to the dealer. O Zurich; Hong Kong; O Hong Kong; New York New York; Hong Kong London; Zurich Question 2 10 ptsQuestion 8 Please use the data below, to answer the following question. Interest rate in US (Rh): 7% Interest rate in Canada (Rh): 5% The current spot rate for CAD $0.800 So): 1-year forward rate for CAD (F): $0.816 What is your covered rate of return using CAD (Rcf)? O 9.140% O 7.100% O 4.902% O 2.914% 80 FS 808 FA FS 44 F7 %Please use the data below, to answer the following question. Interest rate in US (Rh): 5% Interest rate in Canada (Rh): 7% The current spot rate for CAD $0.800 (So): 1-year forward rate for CAD (F): $0.791 What is your covered rate of return using USD (Rch)? 3.819% O 6.195% 8.217% O 5.796% 80 FS 800 F4 14 F7Question 6 10 pts The table below presents quotes and cross-quotes on BP and SF. Price for BP in New Price for SF in Price for SF in York (in $) Chicago (in $) London (in BP) $ 1.725 for 1 BP $ 0.645 for 1 SF BP 0.365 for 1 SF If all traders use triangular arbitrage to maximize profits, then the dollar price of BP for the New York dealer will the BP price of SF for the London dealer will , and the dollar price of SF for the Chicago dealer will_ increase; increase; decrease O decrease; increase; increase increase; decrease; decrease decrease; decrease; increase 80 FS F4 44Question 9 10 pts Please use the data below, to answer the following question. Interest rate in US (Rh): 5% Interest rate in Canada (Rh): 7% The current spot rate for CAD $0.800 (So): 1-year forward rate for CAD (F): $0.781 If you wanted to set up a covered interest rate arbitrage, you should borrow in_ and invest in O US Dollars; Canadian Dollars Canadian Dollars; US Dollars F2 80 FS FS 44 F7 S %D Question 2 10 pts The table below presents bid-ask quotes for Euro (EUR) from several currency dealers around the world. Currency Dealer in London Hong Kong Zurich New York Bid/Ask Quotes for EUR $1.3454-60 $1.3450-61 $1.3462-65 $1.3459-66 The maximum profit a currency speculator, with access to $2,500,000, can make in one round trip locational arbitrage transaction is $ 500 0 743 856 O 371D Question 3 10 pts The table below presents bid-ask quotes for Swiss Francs (SF) from several currency dealers around the world. Currency Dealer in Zurich New York London Hong Kong Bid/Ask Quotes for SF $0.7460-71 $0.7471-74 $0.7469-76 $0.7464-70 Based on the quotes below, as all traders use locational arbitrage to maximize profits, ask quote of the _dealer will and bid quote of the _ dealer will Zurich; increase; London; increase; London; increase; Zurich; decrease New York; increase; Hong Kong; decease; O Hong Kong; increase; New York; decrease; D Question 4 10 pts 80 FS 44