Consider the following information: – On the FOREX market, an American bank gives the following quotes...

Consider the following information: –

On the FOREX market, an American bank gives the following quotes

€:$ = 1.2010-1.2060

₤:$ = 1.7960-1.8010 –

A British bank gives the following quote: ₤:€ = 1.5060-1.5080 Is there an arbitrage opportunity? Why or why not? If yes, what is the arbitrage profit? Use $1,000,000.

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