You can trade Boring Unreliable Gadget Inc.s stock for $77 per share in the United States and

Question:

You can trade Boring Unreliable Gadget Inc.’s stock for $77 per share in the United States and for €50 in Europe. Assume a brokerage commission of $0.10 per share in the United States and €0.10 in Europe. A foreign exchange quotes a bid price of $1.5000 for each euro and offers them for $1.5010.
a. Are these prices correct?
b. If not, show how you can capture arbitrage profit by trading BUG stock
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...