1. A London bank quotes an MNC the following rates for the dollar:

Bid 0.6340/$ Ask 0.6630/$

a. If the MNC wants to sell $80 million, how much will it receive in pounds?

b. If the MNC wants to buy 50 million, how much will it pay in dollars?

c. Using the convention mentioned in the textbook, calculate the bid/ask spread on the dollar as a percentage rate up to four decimal places.

d. How would a New York branch of the London bank post the above bid/ask prices? Calculate the bid/ask spread on the pound as a percentage rate up to 4 decimal places.