Question
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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Principles Of Commodity Economics And Finance
Authors: Daniel P. Ahn
1st Edition
0262038374, 9780262038379
