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Finance Practice: Bid/Ask Spread: Suppose that a commercial bank's current quote
10 months ago
28
Suppose that a commercial bank's current quote for transactions involving the United States dollar is A$x - A$1.5020 where x is a positive number less than 1.5020.
(a) Calculate the bid/ask spread for the bank in terms of x as a percentage.
(b) If the bid/ask spread for the bank is given as 0.3%, find the value of x.
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