Reading 18: Foreign Exchange LOS a, (Part 1): Define direct and indirect methods of foreign exchange quotations 1.If the bid is $1.8709/GBP and the ask is $1.8841/GBP, what is the bid-ask spread in GBP/USD? A) 0.5345 - 0.5407. B) 1.8841 - 1.8709. C) 0.5345 - 0.0800. D) 0.5308 - 0.5345. The correct answer was D) The bid-ask spread in European terms is foreign currency per dollar (FC/$) so you are being asked to convert the bid-ask spread to GBP/$. To convert to GBP/$ just take the reciprocal of each number and reverse the bid-ask spread. 1/($1.8709/GBP) = 0.5345 GBP/$ and 1/($1.8841/GBP) = 0.53076 GBP/$. The bid-ask spread is now 0.5308 – 0.5345.
 l2 reading 18 习题.rar (390.54 KB)
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发表于 2008-1-29 20:23
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