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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Definitions:

Template

A pattern or model used as a guide for making something or a molecular sequence that guides the synthesis of a complementary molecule.

mRNA

Messenger RNA; a single-stranded RNA molecule that conveys genetic information from DNA to the ribosome, where they specify the amino acid sequence of the protein products of gene expression.

Complementary DNA

A form of DNA synthesized from a messenger RNA template, allowing for the study or manipulation of gene expression.

Reverse Transcriptase

An enzyme used by retroviruses to transcribe their RNA into DNA, allowing it to be integrated into the host's genome.