Computing Percentage Bid-Ask Spreads on Euro and Franc
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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?
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The solution provides detailed explanations and answer for the exchange rate problem.
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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 - ...
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