1. Jacob quotes the bid and ask rates (/$) below for the yen against the dollar.

Jacob's bid: 120.7 Ask: 120.74

a.) How many dollars does it take to buy 1 million yen?

b) How many dollars will be received for selling 1 million yen?

2. If Bank of America quotes the bid and ask rates (/$) below.

Bank bid: 120.67 Ask: 120.70

a) Can you make money? (Yes/No)

b) Compute the dollar profit from trading 1 million yen. If not, compute the loss.