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Computing Percentage Bid-Ask Spreads on Euro and Franc

Suppose the spot quote on the euro is $0.9302-28, and the spot quote on the Swiss franc is $0.6180-95.

How would I compute the percentage bid-ask spreads on the euro and franc?

And what would the direct spot quote be for the franc in Frankfurt?

Solution Preview

Please see the attached file.

1. The bid-ask spread is calculated as follows:

The percentage bid-ask spreads on the euro and franc are calculated as follows:

Euro bid-ask spread = (0.9328 - ...

Solution Summary

The solution provides detailed explanations and answer for the exchange rate problem.

$2.19