Question
A bank is quoting the following exchange rates against the US Dollar for the Honduran Lempira (HNL) and the Ethiopia Birr (ETB): USD:HNL = 46.4800
A bank is quoting the following exchange rates against the US Dollar for the Honduran Lempira (HNL) and the Ethiopia Birr (ETB): USD:HNL = 46.4800 90 USD:ETB = 21.2100 40 An Ethiopian firm asks the bank for a ETB:HNL quote. a. Calculate the Bid and Ask Rate that the bank may quote the firm. b. From the perspective of the Ethiopian Firm, what would these Bid and Ask rates represent? What is the traded currency?
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Essentials Of Real Estate Finance
Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
