Suppose the spot ask exchange rate sapound is 146 pound100


Suppose the spot ask exchange rate, Sa($/£), is $1.46 = £1.00 and the spot bid exchange rate, Sb($/£), is $1.45 = £1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread?

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Finance Basics: Suppose the spot ask exchange rate sapound is 146 pound100
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