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%
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%
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 33QA
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International
- 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%
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