a$)$ The bid price is $$0\mathrm{.}64$ for the German mark and the ask price is $$0\mathrm{.}68$ for the German mark. What is the bid$-$ ask spread for the mark?

b$)$ Suppose that AZAM Ltd has been invited to put in a tender for a contract in Burundi, with the bid priced in Burundi Francs. ABC Ltd thinks that the contract would cost Tshs $1,850$ million. Because of fierce competition for the bid, ABC Ltd is prepared to price the contract at Tshs $2,000$ million, and since the exchange rate is currently $BF\frac{2\mathrm{.}80}{?}$ Tshs$,$ it puts in a bid of $BF5,600$ million. The contract will not be awarded until after six months.

Required: Advice AZAM Ltd on the possible courses of action to take in order to cover for any risks involved with the bid.

$7.$ Discuss the various foreign exchange exposures that a multination corporation is constantly faced with when it conducts business internationally.