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A New Zealand company needs to make a payment of 50,000 British Pounds (GBP). It receives a two-sided quote on the GBP per NZD exchange
A New Zealand company needs to make a payment of 50,000 British Pounds (GBP). It receives a two-sided quote on the GBP per NZD exchange rate (GBP/NZD) from a dealer of 0.5125/0.5132. Required: Complete all questions below by choosing the correct answer. (a) The amount that it will cost the company in New Zealand Dollars to purchase the required GBP is closest to: Select one alternative: NZD 25,625 O NZD 97,560 O NZD 25,660 NZD 97,430 (b) The percentage bid-ask spread for the two-sided GBP/NZD quote is closest to: Select one alternative: 0.28% O 0.21% O 0.14% O 0.07%
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