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#3. Assume that you are a retail customer (i.e., you buy at the ask and sell at the bid). Use the information below to answer
#3. Assume that you are a retail customer (i.e., you buy at the ask and sell at the bid). Use the information below to answer the following question.
| Bid | Ask | APR | ||||||||||||||||||||
| S0($/) | $ | 1.42 | = | 1.00 | $ | 1.45 | = | 1.00 | i$ | 4 | % | |||||||||||
| F360($/) | $ | 1.48 | = | 1.00 | $ | 1.50 | = | 1.00 | i | 3 | % | |||||||||||
| | ||||||||||||||||||||||
If you had borrowed $1,000,000 and traded for euro at the spot rate, how many do you receive? Show all work
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