Answer Happy

ity Investigate. graph Styles Part 1: Suppose that the current exchange rate is €0.50/$ or USD/EUR = 0.5. 1. What is the direct quote in U.S.? (0.4) 2. Which is the base currency from the direct quote in U.S.? (0.2) 3. Which is the reference currency from the direct quote in U.S.? (0.2) 4. What is the indirect quote in U.S.? (0.4) 5. Which is the base currency from the indirect quote in U.S.? (0.2) 6. Which is the reference currency from the indirect quote in U.S.? (0.2) 7. What is the direct quote in European country? (0.4) 8. Which is the base currency from the direct quote in European country? (0.2) 9. Which is the reference currency from the direct quote in European country? (0.2) 10. What is the indirect quote in European country? (0.4) 11. Which is the base currency from the indirect quote in European country? (0.2) 12. Which is the reference currency from the indirect quote in European country? (0.2) Part 2: Suppose the $/€ bid and ask prices are $1.20/€ and $1.25/€ 1. Are the above bid/ask price quotes (direct or indirect) quotes in U.S.? (0.2) 2. What are the corresponding €/$ bid and ask prices? To earn credits, you must show all your works. (0.4) Part 3: Use the table below to answer the following questions (use 4 decimal points). US$ Bank Quotations British pounds Euros Bid $1.9712/£ $1.4738/€ Ask $1.9717/£ $1.4742/€ 1. Are the above bid/ask price quotes (direct or indirect) quotes in U.S.? (0.2) 2. Please find Bid-Ask spread for $/£. To earn credits, you must show all your works. (0.2) 3. Please find Bid-Ask spread for $/€. To earn credits, you must show all your works. (0.2) You have $500,000. And, you want to exchange $500,000 for £. How much will you have in £? To earn credits, you must show all your works. (0.4) 4. 5. You want to buy £500,000. How much will you spend in $? To earn credits, you must show all your works. (0.4) 6. You have $500,000. And, you want to exchange $500,000 for E. How much will you have in €? To earn credits, you must show all your works. (0.4) 7. You want to buy €500,000. How much will you spend in $? To earn credits, you must show all your works. (0.4) 8. What are the bid price quotes for the value of pound in terms of euro? To earn credits, you must show all your works. (0.4)

10. Please find Bid-Ask spread for €/£. To earn credits, you must show all your works. (0.2) 11. What are the bid price quotes for the value of euro in terms of pounds? To earn credits, you must show all your works. (0.4) 12. What are the ask price quotes for the value of euro in terms of pounds? To earn credits, you must show all your works. (0.4) 13. Please find Bid-Ask spread for £/€. To earn credits, you must show all your works. (0.2) 14. You have £500,000. And, you want to exchange £500,000 for €. How much will you have in €? To earn credits, you must show all your works. (1) 15. You have €500,000. And, you want to exchange €500,000 for £. How much will you have in £? To earn credits, you must show all your works. (1)