Q1. A foreign currency is quoted at $1.5558 - 70. The percentage spread is closest to:

A)   0.00120%.

B)   0.07707%.

C)   0.07713%.

Q2. 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:

A)    0.702%.

B)    0.489%.

C)    0.697%.

Q3. Assume that the EUR/USD six-month forward exchange rate is quoted at 0.82556 – 0.82633. From a European dealer’s perspective, what is the bid-ask spread as a percentage of the ask price based on a direct quote?

A)   0.0932%.

B)   0.0933%.

C)   0.0009%.

答案和详解如下：

Q1. A foreign currency is quoted at $1.5558 - 70. The percentage spread is closest to:

A)   0.00120%.

B)   0.07707%.

C)   0.07713%.

Correct answer is B)         

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

Q2. 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:

A)    0.702%.

B)    0.489%.

C)    0.697%.

Correct answer is C)

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%

Q3. Assume that the EUR/USD six-month forward exchange rate is quoted at 0.82556 – 0.82633. From a European dealer’s perspective, what is the bid-ask spread as a percentage of the ask price based on a direct quote?

A)   0.0932%.

B)   0.0933%.

C)   0.0009%.

Correct answer is A)

The spread is the difference between the bid and the ask or 0.82633 – 0.82556 = 0.00077. The spread as a percent of the ask price is (0.00077 / 0.82633) or 0.0932%.