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Please solve (G). I am so confused. Thank you. b) Compute the bid-ask spread for the two pairs (2) NZD/JPY and USD/JPY (Ask - Bid)

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Please solve (G). I am so confused. Thank you.

b) Compute the bid-ask spread for the two pairs (2) NZD/JPY and USD/JPY (Ask - Bid) / Ask NZD/JPY (69.86 - 69.80) / 69.86 = 0.00085 0.085% USD/JPY (104.45 - 104.43)/ 104.45 = 0.00019 0.019% c) Compare the two bid-ask spreads from b) and explain why they are different (2 p.) The two bid-ask spreads are different because the USD/JPY is a highly liquid currency pair. NZD/JPY has a lower liquidity, so the bid-ask spread is higher on the NZD/JPY. d) Compute the bid and the ask quotes for JPY/NZD (2 p.) JPY/NZD 1/69.86 0.01431 (BID RATE) and 1/69.80 0.01433 (ASK RATE) e) How many NZD dollars does it take to buy 50,000 JPY from the bank? (2 p.) 69.86 * 50,000 JPY = 3,493,000 NZD f) How many JPY does it take to buy 1000 NZD from the bank? (2 p.) 0.01433*1,000 = 14.33 JPY g) How many NZD to you get when you sell 50,000 JPY to the bank? You are a New Zealand tourist who took a trip to Japan with a budget of 10,000 JPY. When you return to New Zealand, you sell your leftover JPY to the bank and they give you 50 NZD back. How much did you spend on your trip in JPY (4 p.)

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