Question: Suppose the spot ask exchange rate, Sa($|), is $1.82 = 1.00 and the spot bid exchange rate, Sb($|), is $1.78 = 1.00. If you were

Suppose the spot ask exchange rate, Sa($|), is $1.82 = 1.00 and the spot bid exchange rate, Sb($|), is $1.78 = 1.00. If you were to buy $3,000,000 worth of British pounds and then sell them five minutes later without the bid or ask changing, how much of your $3,000,000 would be "eaten" by the bid-ask spread?

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