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ABC Bank receives a spread of GHS 0 . 5 per US$ and 6 . 8 4 9 % of spread ( or 0 .

ABC Bank receives a spread of GHS0.5 per US$ and 6.849% of spread (or 0.06849 decimals) on the trading of foreign currencies.
a. Determine its bid rate.
b. Determine its ask rate.
c. Peace Ltd, a customer, needs US$5 million to buy a machine from Boeing Ltd. How much is the cost of the machine in GHS?
d. What is the profit of the bank?
e. Love Ltd, a customer, has US$2 million but needs GB. If ABC Bank quotes the GHS/ GB as 4.504.99, how much GB will Love Ltd get?
f. What is the profit of the bank on the transaction of Love Ltd?

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