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

Dealer A Dealer B

Bid Ask Bid Ask

$1.1284/ $1.1368/ $1.1464/ $1.1590/

1. Show without any calculations 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.
2. Prove your point by narrating the trading activities that you need to perform and calculating arbitrage profit by starting with a nominal sum of $45 million.