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Bid / ask spreads for currency

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Please help with the following problem.

I need to learn about bid-ask spreads for currency, including how to calculate. Could you please show me how to do these using 2 countries: India and Brazil?

Also could you include a summary on how the results could impact a company's decision globalizing their business to those countries?

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Solution Summary

This posting helps with a problem about international finance. It discusses bid-ask spreads for currently. It explains how to calculate and includes of summary of how results could impact a company's decision. The explanation is given in 305 words.

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A bid ask spread can be defined as the difference between the highest price offered by buyer of security, i.e., currency in this case and the lowest price accepted by the seller. When we observe the quotes of a security such as currency on exchange, we see two prices. On the left hand side is bid price whereas on the right hand side is the ask price. The ask is greater than the bid price and the difference between the two is called Bid ...

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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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