Question
Suppose the quote on Chinese Yuan/Renminbi is CNY6.8994-6.9006 per USD. 1) If you converted $10,000,000 to Chinese yuan and then back to dollars, how many
Suppose the quote on Chinese Yuan/Renminbi is CNY6.8994-6.9006 per USD.
1) If you converted $10,000,000 to Chinese yuan and then back to dollars, how many dollars would you end up with? (Hint: In a way, you will actually calculate the spread of the dealer)
2) Suppose you could buy yuan at the bid rate and sell them at the ask rate. How many dollars would you have to transact in order to earn $100,000 on a round-trip transaction (buying yuan for dollars and then selling yuan for dollars)?
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Finance And Sustainability Proceedings From The Finance And Sustainability Conference Wroclaw 2017
Authors: Agnieszka Bem, Karolina Daszy?ska-?ygad?o , Ta?ána Hajdíková, Péter Juhász
1st Edition
3319922270,3319922289
