Find percetage bid-ask spreads on pound and euro
Suppose the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt.
a) Is there a profitable arbitrage situation? Describe it.
b) Compute the percetage bid-ask spreads on the pound and euro.
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Suppose the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt. Compute the percetage bid-ask spreads on the pound and euro.
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