Rabindranath Bengal, a U.S.-based international portfolio manager, wishes to purchase 1,340 shares of Sanskrit Corporation stock, currently selling at 1,588.63 rupees (INR) per share (including transaction costs) on the National Stock Exchange of India. A local bank in New York quoted an exchange rate of 44.75 - 95 INR/USD. The total cost of this transaction in U.S. dollars is closest to: a. $47,360 b. $47,570 c. $95,687
b 1588.63*1340/44.75
44.75 is the bid. Are you sure?
44.75 bid 44.95 ask note. what was the exact question?
Good for you, I just wanted to make sure you nail it hard.
haha dreary and this on a sunday morning…
Try to use up-the-bid rule: 1340*1588.63INR/(?INR/USD) = 1340*1588.63/44.75 Or buy INR for higher(“ask”) price: 1340*1588.63INR = 1340*1588.63*(1/4.4) The 2dn method can be used as QA test: if you got two amount to pay, choose the larger one, o/w, think twice. The market maker have to take some profit for the risk.