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The current bid price is $1.2/€ and ask price is $1.25/€. If an individual investor wants...

The current bid price is $1.2/€ and ask price is $1.25/€. If an individual investor wants to buy Euro using $1000. How much Euro he will get?

€1200

€1250

€833.33

€800

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Answer #1

Investor wants to buy Euro by using $1000. Banker will sell Euros at ask Price.

Total Euros he can invest= $1000/1.25

=€ 800

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