A FX dealer in Melbourne provides a quote of AUD 1= USD0.7550-0.7560.

a. What is the commodity currency and term currency in the advertised quote? Is it a direct quotation or an indirect quotation? What is the bid-offer spread for the local dealer?

b. Australian company ABC wishes to convert AUD$10 million into USD to invest in US stock market. Identify the exchange rate that ABC should use and explain why briefly

c. Given your answer to part b), how much in USD will ABC receive?

d.If Australian dollar appreciates by 50 points in both bid and offer price, how much USD will they receive?

e.BHP has US$10 million that they wish to convert to AUD. Identify the exchange rate that BHP should use and explain why briefly

f.If BHP accepts the dealers quote, how much in AUD will they receive?