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Suppose the spot ask exchange rate, Sa($/), is $1.46 = 1.00 and the spot bid exchange rate, Sb($/), is $1.45 = 1.00. If you were
Suppose the spot ask exchange rate, Sa($/), is $1.46 = 1.00 and the spot bid exchange rate, Sb($/), is $1.45 = 1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
