If a foreign currency dealer is quoting a bid-ask spread of $1.0500-35 ...

By Investopedia Staff AAA
If a foreign currency dealer is quoting a bid-ask spread of $1.0500-35 on the euro, what must be the dealer's percentage spread?
A) -0.3333%
B) 1 .003%
C) 0.3333%
D) 0.3322%

The correct answer is: D)
Percentage Spread = [(Ask Price - Bid Price)/Ask Price] x 100
= [(1.0535 - 1.0500)/1.0535] x 100
= 0.3322%


  1. Sometimes investment banking firms allocate shares of hot issues to the personal ...

    The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
  2. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
  3. A 7-year, 6% coupon callable bond is currently trading at 96.25.  The ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  4. According to SEC Release IA-1092, which of the following would NOT qualify as an ...

    The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
Trading Center