2. Choose the correct answer inside the bracket. The bid-ask rates of USD/GBP are quoted as...

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2. Choose the correct answer inside the bracket. The bid-ask rates of USD/GBP are quoted as $1.7624/£ - $1.7364/£ in a bank. If you are a British resident, you treat the exchange rate as (direct vs indirect) quote and (American vs European) term. If you are going to sell British Pound, the ($1.7624/£ vs $1.7864/£) rate will be applied. (3 marks) 3. The treasurer of a German company purchases dollars with 3 million euros to make American goods purchase. Directly after, she is told that they no longer need to purchase the goods. She then sells the dollars back for euros. Assume the bid rate is €0.8662/$ and the ask rate is €0.8702/$, how much will the treasurer lose or gain? (3 marks) 2. Choose the correct answer inside the bracket. The bid-ask rates of USD/GBP are quoted as $1.7624/£ - $1.7364/£ in a bank. If you are a British resident, you treat the exchange rate as (direct vs indirect) quote and (American vs European) term. If you are going to sell British Pound, the ($1.7624/£ vs $1.7864/£) rate will be applied. (3 marks) 3. The treasurer of a German company purchases dollars with 3 million euros to make American goods purchase. Directly after, she is told that they no longer need to purchase the goods. She then sells the dollars back for euros. Assume the bid rate is €0.8662/$ and the ask rate is €0.8702/$, how much will the treasurer lose or gain? (3 marks)

Answer rating: 100% (QA)

2 In the given bidask rates of USDGBP the quote is 17624E 17864f If you are a British resident you t... View the full answer