Question: Suppose the spot ask exchange rate, S a ($|), is $1.52 = 1.00 and the spot bid exchange rate, S b ($|), is $1.50 =

Suppose the spot ask exchange rate, S ^a($|), is $1.52 = 1.00 and the spot bid exchange rate, S ^b($|), is $1.50 = 1.00. If you were to buy $100,000 worth of British pounds and then sell them five minutes later, how much of your $100,000 would be "eaten" by the bid-ask spread?

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