What would the bid-ask spread be for pound sterling quoted at $14419-28?
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A. B. C. D. E.D
Percent spread = [(1.4428 - 1.4419)/1.4428] x 100 = 0.062%
The bid-ask spread is the difference between the bid price and the ask price of a security or currency. In this case, we are given the pound sterling quote as $14419-28.
The bid price refers to the price at which buyers are willing to purchase the currency, while the ask price is the price at which sellers are willing to sell the currency. The bid price is typically lower than the ask price, creating a spread between the two.
In the given quote, the bid price is $14419 and the ask price is $14428. To calculate the bid-ask spread, we subtract the bid price from the ask price:
Spread = Ask price - Bid price Spread = $14428 - $14419 Spread = $9
Now, we need to express the bid-ask spread as a percentage of the ask price. To do this, we divide the spread by the ask price and multiply by 100:
Spread percentage = (Spread / Ask price) * 100 Spread percentage = ($9 / $14428) * 100 Spread percentage ≈ 0.0623 ≈ 0.63%
Therefore, the bid-ask spread for pound sterling quoted at $14419-28 is approximately 0.63%.
The correct answer is E. 0.63%.