Reading 18: Currency Exchange Rates-LOS b, (Part 1)习题精选

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

2^#

发表于 2010-4-13 15:33 | 只看该作者

A foreign currency is quoted at $1.5558 - 70. The percentage spread is closest to:

0.07707%.

0.00120%.

0.07713%.

Percent spread = [(Ask price – Bid price)/Ask price] × 100
Percent spread = [(1.5570 – 1.5558)/1.5570] × 100 = 0.07707%

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

3^#

发表于 2010-4-13 15:34 | 只看该作者

Today’s spot CAD bid exchange rate is 1.425 CAD/EUR and the ask exchange rate is 1.435 CAD/EUR. The percent spread is closest to:

0.697%.

0.702%.

0.489%.

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

4^#

发表于 2010-4-13 15:34 | 只看该作者

Today’s spot CAD bid exchange rate is 1.425 CAD/EUR and the ask exchange rate is 1.435 CAD/EUR. The percent spread is closest to:

0.697%.

0.702%.

0.489%.

The percentage spread is the same irrespective of how the quote is made. The percentage spread is calculated as: (1.435 ? 1.425) / 1.435 × 100 = 0.697%

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

5^#

发表于 2010-4-13 15:34 | 只看该作者

Assume that the EUR:USD six-month forward exchange rate is quoted at 1.2102/1.2112. What is the bid-ask spread as a percentage of the ask price based on a direct quote for euros?

0.0847%.

0.0848%.

0.0826%.

UID: 137525
帖子: 5724
主题: 885
注册时间: 2009-7-1
最后登录: 2011-3-29

6^#

发表于 2010-4-13 15:34 | 只看该作者

Assume that the EUR:USD six-month forward exchange rate is quoted at 1.2102/1.2112. What is the bid-ask spread as a percentage of the ask price based on a direct quote for euros?

0.0847%.

0.0848%.

0.0826%.

Our quote is in terms of the number of dollars per euro, and a direct quote for euros is the number of euros per dollar. So, we must invert the rates given to get USD:EUR = 0.8256/0.8263. The spread is the difference between the bid and the ask or 0.8263 ? 0.8256 = 0.0007. The spread as a percent of the ask price is (0.0007 / 0.8263) or 0.0847%. Rounding is per market convention.