Suppose the bank gives you the following quotes: 1 = C3, C1 = A2, and 1 = A5. Many investors realized that there is an arbitrage opportunity and exploited this opportunity through trading. Therefore, over time, the exchange rate of the Canadian dollar (C) with respect to the US dollar should ______, and the exchange rate of the Australian dollar (A) with respect to the US dollar should ______.
1) appreciate; depreciate
2) depreciate; appreciate
3) depreciate; depreciate
4) appreciate; appreciate
5) remain stable; appreciate