土豆妮

Given a foreign currency quotation bid of $0.8955 and an ask of $0.9045 what is the percentage bid-ask spread, and who profits from it?

% Bid-AskSpread

Profits?

A) 0.9950% Customer

B) 0.9950% Bank

C) 1.0050% Bank

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% spread = [(ask price bid ? price) / ask price] × 100

= [(0.9045 ? 0.8955) / 0.9045 ] × 100 = 0.9950%

The bid-ask spread is how banks make their profit on foreign currency transactions.