You are a U$.$S$.-$based treasurer with $$1,000,000$ to invest. The dollar$-$euro exchange rate is quoted as and the dollar$-$pound exchange rate is quoted

at $$1\mathrm{.}80=1\mathrm{.}00.$ If a bank quotes you a cross rate of $,$ how much money can astute trader make?

Multiple Choice

No arbitrage is possible

$$1,160,000$

$$500,000$

$$250,000$

If the bid and ask prices are and $,$ respectively, the corresponding bid and ask prices are

Multiple Choice

$0\mathrm{.}6667$ and $0\mathrm{.}6623.$

$$1\mathrm{.}51$ and $$1\mathrm{.}50.$

and

cannot be determined with the information given.