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Suppose the spot ask exchange rate, sa($|), is $1.90 = 1.00 and the spot bid exchange rate, Sb($|), is $1.89 = 1.00. If you were
Suppose the spot ask exchange rate, sa($|), is $1.90 = 1.00 and the spot bid exchange rate, Sb($|), is $1.89 = 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? a. $52,632 O b.$52,910 O c. $100,000 Od. $1,000,000
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