If Chase Manhattan Bank quotes bid and offer rates for the Swiss franc at $.5250/$.5260,the bank would realize profits of $1,000 on the purchase and sale of 1 million francs.

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The bank buys francs at the bid rate of $0.5250 and sells at the offer rate of $0.5260, making a profit of $0.001 per franc. For 1 million francs, the profit is $1,000 (1,000,000 francs x $0.001).

If Chase Manhattan Bank Quotes Bid and Offer Rates for the Swiss