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Jim Waugh specializes in cross-rate arbitrage. He notices the following quotes: Swiss franc/dollar=A$1.5971/$ Australian dollar/U.S....

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Finance

Jim Waugh specializes in cross-rate arbitrage. He notices the following quotes:

Swiss franc/dollar=A$1.5971/$

Australian dollar/U.S. dollar=A$1.8215/$

Australian dollar/Swiss franc=A$1.1450/SFr

If there is an arbitrage opportunity, what steps would you take to make an arbitrage profit, and how much would you profit if you have $1,000,000 available for this purpose?

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