Suppose that the current buy rate for the Japanese yen is 87.410 yen/dollar and the current sell rate is 87.440 yen per dollar.If a bank buys and sells $1,000,000 in the yen market,it will make 30,000 yen from a spread.

Question

Quizplus · Accepted Answer

The difference between the buy and sell rates is 0.030 yen/dollar. Therefore, for a transaction of $1,000,000, the bank will make a profit of 0.030 yen/dollar x $1,000,000 = 30,000 yen.

Suppose That the Current Buy Rate for the Japanese Yen