Suppose the quote on Chinese Yuan$/$Renminbi is CNY$7\mathrm{.}1960-7\mathrm{.}1975$

per USD $($or USDCNY$).$

$($a$)$ If you converted $$10,000,000$ to Chinese yuan and then back to

dollars, how many dollars would you end up with? $($Hint: In a

way, you will actually calculate the spread of the dealer$)$

$($b$)$ Suppose you could buy yuan at the bid rate and sell them at the

ask rate. How many dollars would you have to transact in order to

earn $$100,000$ on a round$-$trip transaction $($buying yuan for dollars

and then selling yuan for dollars$)?$