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Calculate the relative bid-ask spread for the following exchange rates. How much money you will lose if you convert 100,000 US dollar into the Canadian dollar and then convert the Canadian dollar back to the US dollar based on the quotes below?   Bid Price (USD/CAD) Ask Price (USD/CAD) Canadian dollar 0.7500 0.7520   A. None is correct.   B. Relative bid-ask spread: 0.266%; Loss: $200 USD   C. Relative bid-ask spread: 0.200%; Loss: $200 USD   D. Relative bid-ask spread: 0.266%; Lose: $266 USD

Calculate the relative bid-ask spread for the following exchange rates. How much money you will lose if you convert 100,000 US dollar into the Canadian dollar and then convert the Canadian dollar back to the US dollar based on the quotes below?   Bid Price (USD/CAD) Ask Price (USD/CAD) Canadian dollar 0.7500 0.7520   A. None is correct.   B. Relative bid-ask spread: 0.266%; Loss: $200 USD   C. Relative bid-ask spread: 0.200%; Loss: $200 USD   D. Relative bid-ask spread: 0.266%; Lose: $266 USD

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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  1. Calculate the relative bid-ask spread for the following exchange rates. How much money you will lose if you convert 100,000 US dollar into the Canadian dollar and then convert the Canadian dollar back to the US dollar based on the quotes below?

     

    Bid Price (USD/CAD)

    Ask Price (USD/CAD)

    Canadian dollar

    0.7500

    0.7520
      A.

    None is correct.
      B.

    Relative bid-ask spread: 0.266%; Loss: $200 USD
      C.

    Relative bid-ask spread: 0.200%; Loss: $200 USD
      D.

    Relative bid-ask spread: 0.266%; Lose: $266 USD
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