Question: Suppose the spot ask exchange rate, Sa($), is $1.91 = 1.00 and the spot bid exchange rate, Sb($), is $1.88 = 1.00. If you were

Suppose the spot ask exchange rate, Sa($), is $1.91 = 1.00 and the spot bid exchange rate, Sb($), is $1.88 = 1.00. If you were to buy $8,000,000 worth of British pounds and then sell them five minutes later without the bid or ask changing, how much of your $8,000,000 would be "eaten" by the bid-ask spread? $138,219 $116,171 $125,654 $240,000 $127,660

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