Suppose you travel to Mexico and the exchange rate at the airport is as following: the bid rate is $0.05 and the ask rate $0.07. If you want to exchange $1000 for pesos, how many pesos will you receive?

After receiving your pesos you decide to convert back into dollars, hoe much dollars will you revive? Separately, compute the bid/ask percentage spread.

Answer rating: 100% (QA)

To calculate the number of pesos you will receive when exchanging 1000 you ... View the full answer