Suppose a trader quotes the following for the British pound, $1.75-1.77/. a) What is the direct bid-ask

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Suppose a trader quotes the following for the British pound, $1.75-1.77/.

a) What is the direct bid-ask rate for a British investor?

b)If a British investor were to buy 10,000,000 of U.S. dollars, and then sell them a minute later, with the same quote what is her loss or gain in the transaction?Explain.

Related Book For answer-question

An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Posted Date: May 15, 2024 09:31 PM

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Suppose a trader quotes the following for the British pound, $1.75-1.77/. a) What is the direct bid-ask

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a The direct bidask rate for a British investor can be calculated using the given quote The direct b... View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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