Please see attached image containing the question

a) Mike quotes the bid and ask rates (#/$) below for the yen against the dollar. i) How many dollars does it take to buy 1 million yen? a UI A W Mike Bid Ask i) ii) 120.71 120.74 10 00 b) Additionally, Bank of America (BOA) quotes the bid and ask rates (1/$) below. 10 i) Can you make money? (Yes/No) 11 ii) If so, compute the dollar profit from trading 1 million yen. If not, compute the loss. 12 13 BOA Bid Ask i) Enter "Yes" or "No": 14 120.67 120.70 ii) $ profit (positive) or loss (negative) 15 16 c) Separately, you see the spot rates for the dollar, euro, and pound below. 17 i) Compute the synthetic $/f rate from the other two rates. 18 ii) Ignoring transaction costs (bid-ask spreads), can you make money? (Yes/No) 19 iii) If so, compute the dollar profit (a positive number). It not, compute the dollar loss (negative). Start 20 by trading f1. Specify the three executable transactions below. Each box should show a signed cash flow. A positive cash flow represents a purchase, while a negative cash flow represents a sale. Net cash 21 flows for the pound and the euro should be zero, i.e., the profit/loss should be made only in dollars. 22 23 24 $/E $/E Elf 25 1.27 1.84 1.46 26 27 i) Synthetic $/f rate: 28 ii) Enter "Yes" or "No": 29 iii) Cash flows 30 Trading fl and $: pound (1 or -1) dollar(s) 31 Trading f1 and E: pound (1 or -1) euro(s) 32 Trading E and $: euro(s) dollar(s) 33 34 $ profit (positive) or loss (negative): dollar(s) 35