1. A dealer provides a customer with the following American term quotes on the British pound:

	Bid	Ask
Pound	1.2391	1.2396

a. Is the pound the asset or the price in the quotes provided by the dealer? Circle one.

ASSET PRICE

b. Use the information provided to calculate the dealers European term quotes on the pound. Enter the bid and ask values (4 decimal places) in the table below.For full credit you must show your work.

	Bid	Ask
Pound

2. Philip has just completed transactions in France and Japan. He is now holding 100,000 and 300,000 and wants to convert to U.S. dollars. His currency dealer provides this quotation:

USD/JPY: 0.010094 97

EUR/USD: 0.7638 40

What are Philips proceeds from conversion? For full credit you must show your work