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zaharov [31]
3 years ago
7

In conversation, interbank foreign exchange traders use a shorthand abbreviation in expressing spot currency quotations. Conside

r a $/£ bid-ask quote of $1.2519-$1.2523. The currency dealer would likely quote that as ________.
A) 19-23
B) 23-19
C) 4 points
D) none of the options
Business
1 answer:
Kruka [31]3 years ago
5 0

Answer:

The answer is A. 19-23

Explanation:

The bid price is the price that the dealer is willing to buy and ask price is the price that the seller is willing to offer.

In the $/£ bid-ask quote of $1.2519-$1.2523, you would notice that the first three number(1.25) are the same for both the bid and ask quite. So it is a known fact that it is always the last two that is chosen.

The difference between bid and ask price is called spread.

Option B is wrong because it was written incorrectly.

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