7. Suppose the euro is quoted at 0.6064-80 in London, and the pound sterling is quoted at 1.6244-59 in Frankfurt. a. Is there a profitable arbitrage situation? Describe it. b. Compute the percentage bid-ask spreads on the pound and euro. 8. As a foreign exchange trader at Sumitomo Bank, one of your customers would like a yen quote on Australian dollars. Current market rates are: Spot 101.37-85/U.S.$1 A$1.2924-44/U.S.$1 30-day 15-13 20-26 a. What bid and ask yen cross rates would you quote on spot Australian dollars? b. What outright yen cross rates would you quote on 30-day forward Australian dollars? c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery