Including the Transactions Costs of the Bid-Ask Spread,the Euro-Pound Cross $\frac { 1 } { S ^ { a } ( £ / \$ ) }$

question 48

Multiple Choice

Including the transactions costs of the bid-ask spread,the euro-pound cross exchange rate for a customer who wants to sell euro and buy pounds can be computed as

• A)S^b(£/€) = S^b($/€) * S^b(£/$)
• B)S^a(€/£) = S^a(€/$) * S^a($/£)
• C)S^b(€/£) = S^b($/€) * \(\frac { 1 } { S ^ { a } ( £ / \$ ) }\)
• D)All of the above

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