A customer asks JP Morgan to quote them the spot exchange rate for the Brazilian real (BZR) against the South African rand (SAR) and to quote the rate as the number of SAR per BZR. The customer has not said which direction they want to the trade so JP Morgan quotes a bid and an ask rate. JP Morgan quotes the rate as 3.35 - 3.36

Suppose the customer decides to sell 12 mio SAR to JP Morgan. At what rate do they trade and how many BZR do they receive from JP Morgan?

Answer rating: 100% (QA)

The customer will trade at the ask rate of 336 SAR per BZR To calculate the amount o... View the full answer