I need help solving the following problem. I would like to see the steps for eac

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I need help solving the following problem. I would like to see the steps for each part.

Problems 1 and 3 are worth 23 points and problem 2 is worth 22 points for a total of 68 points. You must show your work to receive any credit at all, Partial credit will be given for reasonable attempts. Use the back of the pages if you need more space and label which question you are continuing on the back. The following three banks give the quotes listed below. Bank of New York 1.6700 $/pound Bank of Mexico 0.0770 $/peso Bank of London 22.1500 peso/pound Show your work to determine if arbitrage is possible and explain how you know it is possible. Assume you have 1,000,000 nesos (not dollars) to start with. What profit can you earn in eures Show all of the steps you make in detail in order to receive full credit. Given your answer to (b) above, what do you think will happen to the quotes of each of these three banks in the very near future Be precise and give the direction that each exchange rate will move. If you could only change the peso/pound rate at the Bank of London and the other two rates remain fixed, what rate at the Bank of London would bring the markets into equilibrium

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I need help solving the following problem. I would like to see the steps for eac

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