10. A London bank quotes an MNC the following rates for the dollar: Bid 0.8273/S ASK...

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10. A London bank quotes an MNC the following rates for the dollar: Bid £0.8273/S ASK £0.8442/S a. If the MNC wants to sell £76 million, how much will it receive in dollars? b. If the MNC wants to buy $50 million, how much will it pay in pounds? c. Using the convention adopted by currency dealers, calculate the bid/ask spread on the dollar as a percentage rate up to four decimal places. d. How would a New York branch of the London bank post the above bid/ask prices? Calculate the bid/ask spread on the pound as a percentage rate up to 4 decimal places. How do you explain the difference between this answer and the answer to part c above 10. A London bank quotes an MNC the following rates for the dollar: Bid £0.8273/S ASK £0.8442/S a. If the MNC wants to sell £76 million, how much will it receive in dollars? b. If the MNC wants to buy $50 million, how much will it pay in pounds? c. Using the convention adopted by currency dealers, calculate the bid/ask spread on the dollar as a percentage rate up to four decimal places. d. How would a New York branch of the London bank post the above bid/ask prices? Calculate the bid/ask spread on the pound as a percentage rate up to 4 decimal places. How do you explain the difference between this answer and the answer to part c above

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Bid 08273 Ask 08442 Part A If the MNC wants to sell 76 million The bank will purchase the at the Bid ... View the full answer