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Bid/Ask Spread
Utah Bank’s bid price for Canadian dollars is $.7938 and its ask price is $.8100. What is the bid/ask percentage spread?
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- The spot quote in New York for £ is $ 1.5912-1.6024 and for € is $ 1.1193-1.1226.Calculate the bid-ask spread percentage for euro PER pound sterling.International financial management : MCQ Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Peruvian Sol in Canadian dollar is: (a) about 3.1875 Canadian dollars. (b) about .3137 Canadian dollars. (c) about 2.36 Canadian dollars. (d) about .3137 British pound (e) about .3137 Peruvian Sol. 2. Assume that a bank’s bid rate on Swiss francs is £0.25 and its ask rate is £0.26. Its bid-ask percentage spread is: (a) about 3.85 (b) about 4.00% (c) about 3.55% (d) about 4.15%The quote in Tokyo Exchange market for OMR is given as JPY 275.639 = 1 OMR as bid and JPY 275.763 = 1 OMR as ask. The yen is quoted in Oman market at OMR 0.0036271 = 1 JPY bid and OMR 0.0036842 = 1 JPY ask. Calculate the bid-ask spread as a percentage of the bid price from the Oman and Japanese perspective.
- 12. EXCEL]Bid-ask spread: Nova Scotia Bank offers quotes on the Canadian dollar as shown below. What is the bid-ask spread based on these quotes? Bid AskC$ 0.9973 $ C$ 0.9978/$Assume that a bank bid rate on Swiss francs i 0.25 British pound andits ask rate is 0.26 British pound. Its bid ask percentage spread is: O a 417% Ob. 385% Oc 4% O d 426%The foreign exchange department of Bank of America has a bid quote on Canadian dollars (C$) of C$0.9720/$. If the bank typically tries to make a bid-ask spread of 0.5 percent on these foreign exchange transactions, what will the ask rate have to be? (Round answer to 2 decimal places, e.g. 52.75.) The ask rate has to be C$ enter the ask rate rounded to 2 decimal places /$
- Calculate the relative bid-ask spread for the following exchange rates. How much money you will lose if you convert 100,000 US dollar into the Canadian dollar and then convert the Canadian dollar back to the US dollar based on the quotes below? Bid Price (USD/CAD) Ask Price (USD/CAD) Canadian dollar 0.7500 0.7520 A. None is correct. B. Relative bid-ask spread: 0.266%; Loss: $200 USD C. Relative bid-ask spread: 0.200%; Loss: $200 USD D. Relative bid-ask spread: 0.266%; Lose: $266 USDAssume the bid rate of a Canada dollar is A$.271 while the ask rate is A$.273 at Bank A. Assume the bid rate of the Canada dollar is A$.265 while the ask rate is A$.266 at Bank B. Given this information, what would be your gain if you use A$2,500,000 and execute locational arbitrage? That is, how much will you end up with over and above the A$2,500,000 you started with? Group of answer choices A$ 46,992 A$ 65,789 - A$ 65,789 A$ 18,315 - A$ 46,992The following information is available to a Zambian trader: i. Percentage spread given for Zambian kwacha per US dollar is 0.1%. The ask rate for Zambian kwacha per C$ dollar is K9.526 ii. Canadian dollars per US dollar C$ 1.2780/US$ iii. Kwacha per US dollar K8.524/US$ a) Calculate the bid rate b) Determine if there is any opportunity for arbitration c) Explain How a Zambian trader with K1, 200,000 can use this amount to benefit from the inter market arbitrage? What will be the profit or loss for the trader?
- Assume the following information: Quoted Bid Price Quoted Ask Price Value of a Canadian dollar in $ $0.66 $0.69 Value of Chinese Yuan in $ $.074 $.075 Value of a Canadian dollar in Chinese Yuan 8.2 8.3 Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy? A. $6,024 B. $6,133 C. $2,368 D. $13,711The bid-ask rate for GBP/OMR in Britain stock exchange GBP is quoted as GBP1.6675-802/OMR. What will the spread for OMR/GBP? a. All the options are wrong b. -0.756 c. 0.756 d. 1.93 e. 0.762 The quote for CAD in Canada is 3.40082 - 52112 = 1 OMR. What will be the ask rate for OMR/CAD? a. 0.284001 b. 0.294047 c. 0.1203 d. 3.52112 e. All the options are wrongABC Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of a British pound (£) in $ $1.61 $1.62 Value of a New Zealand dollar (NZ$) in $ $.55 $.56 Value of a British pound in New Zealand dollars NZ$2.95 NZ$2.96 Assume you have $10,000 to conduct triangular arbitrage. What is your profit from this strategy? What is your profit?