Question
i) The bid rate for the British pound is $1.40 and the ask rate is $1.47. What is the bid/ask spread (in %)? ii) Assume
i) The bid rate for the British pound is $1.40 and the ask rate is $1.47. What is the bid/ask
spread (in %)?
ii) Assume the spot rate of the British pound is $1.45. The expected spot rate one year from
now is assumed to be $1.35. What percentage depreciation/appreciation does this reflect?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
