Suppose the quote on pounds is $1.624-31.
a. If you converted $10,000 to pounds and then back to dollars, how many dollars would you end up with?
b. Suppose you could buy pounds at the bid rate and sell them at the ask rate. How many dollars would you have to transact in order to earn $1,000 on a round-trip transaction (buying pounds for dollars and then selling the pounds for dollars)?