$$\begin{array} { l c c c c c c }
& { \text { Americar Terns } } & && { \text { Europearl Terms } } \
\text { Bark Quotations } & \text { Bid } & \text { Ask } & \text { Bid } & \text { Ask } \
\text { British pounds } & \$ 1.9712 & \$ 1.9717 & \text { £ } 0.5072 & \text { £ } 0.5073 \
\text { Euros } & \$ 1.4738 & \$ 1.4742 & € 0.6783 & € 0.6785
\end{array}$$ Using the table above,what is the bid price of euro in terms of pounds?

Question

$$\begin{array} { l c c c c c c } 
& { \text { Americar Terns } } & && { \text { Europearl Terms } } \
\text { Bark Quotations } & \text { Bid } & \text { Ask } &  \text { Bid } & \text { Ask } \
\text { British pounds } & \$ 1.9712 & \$ 1.9717 & \text { £  } 0.5072 & \text {  £  } 0.5073 \
\text { Euros } & \$ 1.4738 & \$ 1.4742 & € 0.6783 & € 0.6785
\end{array}$$ Using the table above,what is the bid price of euro in terms of pounds?

Quizplus · Accepted Answer

To find the bid price of euro in terms of pounds, we need to divide the bid price of euro by the ask price of pounds.

So, bid price of euro in terms of pounds = € Bid Price / £ Ask Price

= €0.6783/£0.5073

= £1.3378/€

Therefore, the bid price of euro in terms of pounds is £0.7475/€ (reciprocal of £1.3378/€)

Using the Table Above,what Is the Bid Price of Euro