1. Suppose you have EUR 100,000 and you think there is a locational arbitrage in the EUR/GBP spot market given quotes of the three banks. Determine the best EUR gains (if any), otherwise write 0.
2. Suppose you have GBP 100,000 and you think there is a locational arbitrage in the GBP/USD spot market given quotes of the three banks. Determine the best GBP gains (if any), otherwise write 0.
3. Suppose you have USD 100,000 and you think there is a triangular arbitrage in the market given quotes of the three banks. Determine the best USD gains (if any), otherwise write 0.
4. Suppose you have USD 100,000 and since EUR and GBP deposits pay higher interest rates, you decide to convert to either EUR or GBP so you can take advantage of the higher deposit rates. Not converting the USD and investing at 1% will only yield 1,000 USD Profit. What is the best dollar profit for a Covered Interest Rate Arbitrage trade using 1yr forwards?