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 0.49770.5176.

(a) What is the bidoffer spread in points and in percentage terms? (0.25 mark) What is the monetary value of the point in this case? (0.25 mark)

(b) Calculate the AUD/USD exchange rate (0.25 mark). What is the bidoffer spread in points and in percentage terms? (0.25 mark) What is the monetary value of the point in this case? (0.25 mark)

Thank you