Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your client asks you for a quote (both bid and ask) for the AUD-GBP cross exchange rate. You work for a small bank; thus, you
Your client asks you for a quote (both bid and ask) for the AUD-GBP cross exchange rate. You work for a small bank; thus, you will buy and sell the foreign exchange needed for this transaction from your counterparties, Citibank and Deutsche, who give you the following quotes:
Citibank Bid Ask USD per AUD 0.70 0.72
Deutsche Bid Ask USD per GBP 1.20 1.22 Whats the best bid-ask quote (AUD per GBP) you can offer your client, without losing any money on the transaction?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started