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The bid-ask spreads on February 3 , 2020 were 1.1060 - 1.1065 $/euro 31.04 - 31.08...

The bid-ask spreads on February 3 , 2020 were

1.1060 - 1.1065 $/euro

31.04 - 31.08 Thai baht/$.

Assuming a corporation could transact at these interbank rates, at which price could it buy euros

using dollars? How many dollars could it get for 50 million Thai baht?

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Answer #1

price at which at which a corporation buy euros using dollars is (ask rate) which is 1.1065 $ / euro

we need to buy the euro so the bank will take selling rate which is ask rate that is 1.1065

How many dollars get for 50 million thai baht?

we have 50 million thai baht we need to convert the thai baht to dollars

here exchsnge rate given as thai baht/$

hence ask rate will be taken that is 31.08 thati baht/$

hence dollar = 50 million thai baht / 31.08

= 1.608752 million dollars

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