Using the information contained in the table,what amount would an investor receive from exchanging 1AUD for EUR?

Question

Quizplus · Accepted Answer

Since we have AUD and we want EUR,the rate we need to use is of the form EUR/AUD.That is we will use the AUD as the denominator currency.Recalling the rule from the chapter,as the trader gets the worst rate (i.e.loss from the spread),then we will sell AUD at the low rate (i.e.bid rate)of 0.5855.Hence,the investor will receive EUR0.5855 in exchange for 1AUD.

Using the Information Contained in the Table,what Amount Would an Investor