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Reading 18- LOS h~ Q1-8

1.onna Ackerman, CFA, is an analyst in the currency trading department at State Bank. Ackerman is training a new hire, Fred Bos, a recent college graduate with a BA in economics.

Ackerman and Bos have the following information available to them:

Spot Rates

 

Bid Price

Ask Price

Euro/US$

1.0000

1.0015

British Pound/US$

2.0000

2.0100

Ackerman asks Bos to determine the bid-ask spread (the difference between the ask price and the bid price) for Euros per British pound (

1.onna Ackerman, CFA, is an analyst in the currency trading department at State Bank. Ackerman is training a new hire, Fred Bos, a recent college graduate with a BA in economics.

Ackerman and Bos have the following information available to them:

Spot Rates

 

Bid Price

Ask Price

Euro/US$

1.0000

1.0015

British Pound/US$

2.0000

2.0100

Ackerman asks Bos to determine the bid-ask spread (the difference between the ask price and the bid price) for Euros per British pound (

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