You are given the following forex quotation:

Currency Bid rate Ask Rate Euro $1.50 $1.60

Pound $0.50 $0.55

Find: a. Bid/Ask Spread (with respect to Ask) for both the currencies.

b. Convert the direct quotations to indirect bid and ask quotations (# of foreign currency per unit of home currency) for both foreign currencies.

c. Using a mid-rate i.e, (bid+ask)/2, e.g. $1.44/Euro, find the cross rate for Euro/Pound.