Or is there an error in this question? Ok given the GBP:CAD spread, what is the GBP:CAD bid/ask spread? Am i missing something as I’m incredibly tired or is this a typo. Given the following quotes for the Canadian dollar (CAD) and the British pound (GBP), determine the GBP:CAD bid-ask spread. (Note: Carry calculations to at least five decimal places) GBP:CAD Bid Ask 1.59031 − 1.59701 USD:GBP Bid Ask 0.69459 − 0.69686 A) GBP:CAD 2.29921 − 2.31631. B) GBP:CAD 2.28957 − 3.28863. C) GBP:CAD 2.28211 − 2.29921. Your answer: A was incorrect. The correct answer was C) GBP:CAD 2.28211 − 2.29921. We recommend using the following “Bid-Ask Matrix Method” to calculate the bid and ask quotes: Step 1: Put the bid-ask quotes into a matrix as below: Currency Bid Ask USD:CAD 1.59031 1.59701 USD:GBP 0.69459 0.69686 Step 2: “Divide Out” the diagonals.(Remember to put CAD in the numerator - because CAD is in the numerator of the quote we are asked to calculate.) CADBid / GBPAsk = 1.59031 / 0.69686 = GBP:CAD 2.28211 CADAsk / GBPBid = 1.59701 / 0.69459 = GBP:CAD 2.29921
Remember that the bid is the inverse of the ask and vice versa.
I know but it seems like they just mistyped the currencies? The Bid Ask is already shown : what is the GBP:CAD bid/ask spread? GBP:CAD Bid Ask 1.59031 − 1.59701