A local bank has requested foreign exchange quotes for the Swedish krona from Citibank. Citibank quotes a bid rate of $0.1652/SK and an ask rate of $0.1667/SK. What is the bid-ask spread? (Round your final percentage answer to one decimal place.)

Question

Quizplus · Accepted Answer

The bid-ask spread is calculated by taking the difference between the ask rate and the bid rate and dividing it by the ask rate. 
Bid-ask spread = [(0.1667-0.1652)/0.1667] x 100 = 0.9%. Therefore, the best choice is C.

A Local Bank Has Requested Foreign Exchange Quotes for the Swedish