Paper , Order, or Assignment Requirements

Suppose you are a currency trader for BRADESCO and you see the following currency quotes from CITI Bank, ITAU, and CAIXA Economica Federal Banks. Bank Quotation Description Quote CITI Bank Exchange rate of Singapore dollar in U.S. $ $0.32 ITAU Exchange rate of pound in U.S. $ $1.50 CAIXA Economica Federal Banks Exchange rate of pound in Singapore dollars S$4.50 a. Calculate the no arbitrage cross exchange rate for S$/£, and determine whether there is and arbitrage opportunity. Make sure you explain your answer fully. b. If there is an arbitrage opportunity, assuming you have $100 million to use for trading currencies, detail all the steps you will take to make arbitrage profit in a triangular arbitrage case. Indicate how much money you will get for each transaction, and show your ending profit. Please note that you have to end up in the currency you start off with which is the US $. If your answer to a is that there is no arbitrage opportunity then please just indicate so as the answer for