Question

ad t ell rc s r.9835581. National Bank of talys Wells Fargo Banks bid price is S bid price is SFrO.9825/SI and its sell price is SFr0.9835/S1. a. What is the bid/offer spread for Wells Fargo and National Bank of Thailand, respectively?
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Answer #1

Bid / Offer spread Formula = Offer price - Bid price

1. Wells Fargo Bank Bid / Offer spread = sfr 0.9855 / $1 - sfr 0.9845 / $1

=sfr 0.9855 / .99 - sfr .9845 / 0.99

= sfr 0.9954 - sfr 0.9944

= sfr 0.001

2. National Bank of Italy's Bid / Offer spread =   sfr0.9835 / $1 - sfr 0.9825 / $1

= sfr 0.9835 / .99 - sfr .9825 / 0.99

= sfr 0.9934 - 0.9924

= sfr 0.001

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