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You are given the following information: Quantity of exports 600 Domestic currency price of exports 10 Exchange rate (d/f) 1.20 The USD/AUD exchange rate is

You are given the following information:

Quantity of exports 600

Domestic currency price of exports 10

Exchange rate (d/f) 1.20

The USD/AUD exchange rate is quoted as 0.4977-0.5176.

(a) What is the bid-offer spread in points and in percentage terms? What is the monetary value of the point in this case?

(b) Calculate the AUD/USD exchange rate. What is the bid-offer spread in points and in percentage terms? What is the monetary value of the point in this case?

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