Spot cable is quoted at 1.6048-53 in the brokers and you quote a customer 1.6050-55 in USD 3 million. If they sell USD to you, how much GBP will you be short of?
A) 4,816,500.00
B) 1,868,809.57
C) 1,868,576.77
D) 4,815,900.00

Question

Quizplus · Accepted Answer

To calculate the GBP shortage, we need to use the sell side of the spot cable quote, which is 1.6050.

The formula to calculate the GBP shortage is:

(USD amount / sell rate) - (USD amount / buy rate)

Plugging in the values:

(3,000,000 / 1.6050) - (3,000,000 / 1.6048) = 1,868,576.77

Therefore, the answer is C.

Spot Cable Is Quoted at 1