Given the following two sets of quotations by two currency dealers:

Dealer A Dealer B

Bid Ask Bid Ask

$1.2320/ $1.2480/ $1.2100/ $1.2260/

State, without any calculations or explaining the transactions (thats coming in part b), whether these two sets of quotations are out of equilibrium to a degree that would lead to an arbitrage opportunity in the absence of any transaction costs beyond the bid/ask spread.

Prove your point by narrating the trading activities that you need to perform and by calculating arbitrage profit if you start with a nominal sum of $68 million.