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Currency Exchage Rate - Currency Spread
If NZD: USD = 0.6000 - 0.6010. For calculating percentage spread on USD do we need to calculate USD: NZD bid ask quotes from the given NZD:USD quote and then calculate the percentage spread on USD?
My question is when they ask us to calculate percentage spread on a specific currency, say US $, does the bid-ask quote that we should use for calculating the spread need to have US $ as the base currency?
In Schweser, Reading # 18 ( Economics) Page 321, Question 6,
they ask us to calculate the spread on USD.........don't we need to use a bid- ask spread that has USD as the base currency? |
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