Question: 5. (15 points) Assuming that the mid-point quote is the true value of the currency, use the bid and ask quotes in Table 1 (above)

5. (15 points) Assuming that the mid-point quote is the true value of the currency, use the bid and ask quotes in Table 1 (above) to calculate the transaction cost as a percentage of the value of the transaction, for the following currencies: (a) Chinese Yuan (CNY) (b) Canadian Dollar (CAD) (c) Australian Dollar (AUD) Currency: Code Bank Buys Bank Sells CHF 1.117584 Swiss Franc European Euro British Pound Chinese Yuan Australia Dollar Canadian Dollar EUR GBP CNY 1.082806 1.165209 1.297027 0.144111 0.706129 0.748699 1.197167 1.330562 0.145596 0.732627 0.769186 AUD CAD TABLE 1

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