Exhibit 5.

7
HERE IS AN EXAMPLE HOW TO DO QUESTION #1
Calculation of Arbitrage profit

Step 1: We will convert $ into euro by Selling Dollar

$5,000,000 * 0.7627 = Euro 3,813,500.00

We will get Euro 3,813,500.00

Step 2 : We will convert euro into SF by Selling Euro

Euro 3,813,500.00 / 0.6395 = SF 5,963,252.54

We will get SF 5,963,252.54

Step 3 : We will convert SF into $ by selling SF

SF 5,963,252.54 / 1.1806 = $ 5,051,035.53

We will get $ 5,051,035.53

Arbitrage Profit = $ 5,051,035.53 - $5,000,000.00

Arbitrage Profit =$51,035.53

(B)

Calculation of Arbitrage profit

Step 1: We will convert $ into SF by Selling Dollar

$5,000,000 * 1.1806 = SF 5,903,000.00

We will get SF 5,903,000.00

Step 2 : We will convert SF into Euro by Selling SF

SF 5,903,000.00 * 0.6395 = Euro 3,774,968.50

We will get Euro 3,774,968.50

Step 3 : We will convert Euro into $ by selling Euro

Euro 3,774,968.50 / 0.7627 = $ 4,949,480.13

We will get $ 4,949,480.13

Arbitrage Profit = $ 4,949,480.13 - $5,000,000.00

Arbitrage Profit =$50,519.87

(c)

Exchange price which will elimiante arbitrage profit

Euro/SF = 0.7627 / 1.1806 = 0.6460 Euro / SF