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Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not...

Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points. For example, write 12.34 for 12.34%.

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Expert Solution

Bid Price = $1.1045

Ask Price or Offer Price = $1.1506

Bid Ask Spread = $(1.1506-1.1045) = 0.0461 cents

Bid Ask Spread in % =0.0461/1.1506 = 4.006%

jeff jeffy answered 2 years ago
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