A bank quotes the following spot rates for the USD v GBP exchange rate. The bank's bid

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A bank quotes the following spot rates for the USD v GBP exchange rate.
The bank's bid rate is 1.2332 (meaning 1.2332 USD = GBP 1.00 i.e., 1.2332 USD per GBP).
The bank's ask* rate is 1.2337 (meaning 1.2337 USD = GBP 1.00 i.e., 1.2337 USD per GBP).

You are a corporate customer of the bank and you wish to sell 2,000,000 pounds (i.e., 2 mio GBP) to the bank and buy USD.

Q1) At what rate do you deal?

Q2) How many USD will you receive? Give your answer to the nearest USD.

Related Book For answer-question

Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science

ISBN: 978-0324656633

5th edition

Authors: Cliff T. Ragsdale

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Posted Date: Sep 28, 2023 12:47 AM

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A bank quotes the following spot rates for the USD v GBP exchange rate. The bank's bid

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1 To sell 2000000 pounds GBP to the bank and buy USD you would use the banks bid rat... View the full answer

Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science

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