QUESTION 3 Suppose a banker observed the following spot quotations for dollars and pounds. Bank X: $1.0512-18 Bank Y$1.0516-19 Find the abritrage profit available in terms of dollars) to a banker with 10 million dollars at his disposal Round intermediate steps to four decimals and your final answer to two decimals 665 91 7000 1901 86 2000 Suppose that the Thal that is expected to increase in volatility All else being equal bhat dealers should widen their pound bid ask spread as a result of this change in volt O True False