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

By Investopedia Staff AAA
Q:
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%
A:

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%


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