Assume that the bank's bid quote for the Mexican peso is $.126 and the ask price is $.129. If you have Mexican pesos, what is the amount of pesos that you need to purchase $100,000?

Question

Assume that the bank's bid quote for the Mexican peso is $.126 and the ask price is $.129. If you have Mexican pesos, what is the amount of pesos that you need to purchase $100,000?​

Quizplus · Accepted Answer

You need to divide $100,000 by the ask price which is $.129. This would give you the amount of pesos required to purchase $100,000. Therefore, 100,000 ÷ .129 = 793,651 pesos.

Assume That the Bank's Bid Quote for the Mexican Peso