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Explains DM-S$ currency against currency bid-ask quotations

Given the following information, explains the DM/S$ currency against currency bid-ask quotations?

Bank Quotations                   American Terms                    European Terms

                                                 Bid        Ask                              Bid         Ask

Deutsche Marks                   . 6784    .6789                     1.4730   1.4741

Singapore Dollar                    .6999    .7002                     1.4282   1.4288

 

Equation from the text implies S(DM/S$b) = S($/S$b) x S(DM/$b) = .6999 x 1.4730 = 1.0310.  The reciprocal, 1/S(DM/S$b) = S(S$/DMa) = .9699.  Analogously, this is implied that S(DM/S$a) = S($/S$a) x S(DM/$a) = .7002 x 1.4741 = 1.0322.  The reciprocal, 1/S(DM/S$a) = S(S$/DMb) = .9688.  Therefore, the DM/S$ bid-ask spread is DM1.0310-DM1.0322 & the S$/DM spread is S$0.9688-S$0.9699.

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