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The yen is quoted at 0.008300/ Ask and 0.008200/ Bid in Paris. The euro is quoted at 121.20/ Ask and 121.10/ Bid in Tokyo. Convert

The yen is quoted at "0.008300/ Ask and 0.008200/ Bid" in Paris. The euro is quoted at "121.20/ Ask and 121.10/ Bid" in Tokyo. Convert the Paris quote into a / quote and then answer these questions.

a) Calculate the bid/ask spread on the euro as a percentage of the bid price from the Japanese and the French perspectives. The bid/ask spread is the percentage difference between the bid and the ask prices. (Ask Bid ) / Bid

b) Is there an opportunity for profitable arbitrage? If so, describe the necessary transactions using a 1 million starting amount.

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