Question 3 (10 marks)

The following are FX quotes from two competition banks. Determine at which rate and whom the client will deal at.

Fill the blanks:

	Client wants to	Bank A quote	Bank B quote	Client deals at
	Buy 5 GBP versus USD	1.3050/58	1.3052/62	1.3058 Bank A
A	Sell 10 USD versus JPY	110.33/43	110.35/42	(2 Marks)
B	Buy 1 USD versus CAD	1.3156/64	1.3153/61	(2 Marks)
c	Buy 5 USD versus EUR	1.0912/19	1.0910/20	(2 Marks)

Assume you are now a price maker (market maker). Quote a two-way price (both bid and offer with a maximum of 10 points/pips spread) that would attract the client

d. (2 marks) of deal no. a above to deal with your bank.

e. (2 marks) of deal no. b above to deal with your bank

Can anyone help me solve a-e?