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

Bid 0.8273/$

ASK 0.8442/$

a. If the MNC wants to sell 76 million, how much will it receive in dollars?

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

c. Using the convention adopted by currency dealers, 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. How do you explain the difference between this answer and the answer to part c above