Assume that you are a retail customer (i.e.,you buy at the ask and sell at the bid).Use the information below to answer the following question.
$\begin{array}{rccccc}
&{\text { Bid}} & \text { ASK} & \text { APR } \
S_{0}(\$ / €) & \$ 1.42= €1.00 & \$1.45= €1.00 &i \$ 4\% \
F_{360}(\$ / €) & \$ 1.48= € 1.00& \$1.50= €1.00 & i €3\%
\end{array}$ If you had €1,000,000 and traded it for USD at the spot rate,how many USD will you get?

Question

Assume that you are a retail customer (i.e.,you buy at the ask and sell at the bid).Use the information below to answer the following question.
 $\begin{array}{rccccc} 
&{\text { Bid}} & \text { ASK} & \text { APR } \
 S_{0}(\$ / €) & \$ 1.42= €1.00 & \$1.45= €1.00  &i \$  4\% \
F_{360}(\$ / €) & \$ 1.48= € 1.00&  \$1.50= €1.00 & i €3\%
\end{array}$ If you had €1,000,000 and traded it for USD at the spot rate,how many USD will you get?

Quizplus · Accepted Answer

The Answer of Assume that you are a retail customer (i.e.,you buy at the ask and sell at the bid).Use the information below to answer the following question.
 $\begin{array}{rccccc} 
&{\text { Bid}} & \text { ASK} & \text { APR } \
 S_{0}(\$ / €) & \$ 1.42= €1.00 & \$1.45= €1.00  &i \$  4\% \
F_{360}(\$ / €) & \$ 1.48= € 1.00&  \$1.50= €1.00 & i €3\%
\end{array}$ If you had €1,000,000 and traded it for USD at the spot rate,how many USD will you get?

Assume That You Are a Retail Customer (I If You Had €1,000,000 and Traded It for USD at the Ask