Citigroup quotes Danish Kroner as "DKK 6.8871/$ Bid and DKK 6.8922/$ Ask".

a. Which CCY is Citi buying at the DKK 6.8871/$ bid rate, and which is it selling at the DKK 6.8922/$ offer rate?

b. What are the bid and ask prices in American Terms? Which CCY is Citi buying at these prices and which is it selling?

c. If you sell $1 MM to Citi at the bid price and simultaneously buy $1 MM at their offer price, how many DKK will you make or lose? What is Citi profit or loss on the transaction?

Answer rating: 100% (QA)

a C iti is buying D KK at the D KK 6 88 71 bid rate and selling USD at the D KK 6 89 22 offer rate b The bid price in American Terms is 0 14 68 and th... View the full answer