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Consider the following quotes (bid/ask): JPY/USD109.00/109.50 EUR/USD.98/.99 1.) Compute the bid and ask prices for the JPY/EUR cross rate 2.) Suppose another dealer quotes an

Consider the following quotes (bid/ask):

JPY/USD109.00/109.50

EUR/USD.98/.99

1.) Compute the bid and ask prices for the JPY/EUR cross rate

2.) Suppose another dealer quotes an ask price of 115 JPY/EUR. Compute the arbitrage profit that can be earned with $1,000.

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