New york foreign exchange market quotation: USD 1 = EUR (11.4438)/(11.4428).

Frankfurt foreign exchange market quotation: Euro 1 = GBP 0.87 12/23.

Quote in London foreign exchange market: GBP = USD 65,438 +0.6245/55.

Exchange rate multiplication (available median price): (11.4438+0/1.4428)/2 * [(0.8712+0.8723)/2] * [(65433)

Not equal to 1, there is arbitrage opportunity.

(2) If it is less than 1, the dollar holder first converts it into pounds in the London market, then into euros in the Frankfurt market, and then into dollars in the new york market, minus the invested dollars, which is the income:

1000000/1.6255/0.8723 *1.4428-1000000 =17544.21USD.