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The bid price is $0.64 for the Canadian dollar and the ask price is $0.68 for the Canadian dollar. What is the bid-ask spread for the Canadian dollar? O a. 6.25% O b. 8.75% O c. 5.25% O d. 6.77% O e. 7.
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9 votes
The bid price is $0.64 for the Canadian dollar and the ask price is $0.68 for the Canadian dollar. What is the bid-ask spread for the Canadian dollar?

O a. 6.25%
O b. 8.75%
O c. 5.25%
O d. 6.77%
O e. 7.77% ​

User Rajkumar Vasan
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1 Answer

28 votes
28 votes

Answer:

Step-by-step explanation:

The way this is normally done is to take the difference between the bid price and the ask price and divide by the ask price. That answer is not listed. What is listed is the difference divided by the bid price which is (.68 -.64)/.64 That gives 0.0625. To get a % multiply by 100..That gives 6.25% which is A.

So that is the best I can do for you.. Done the way I first suggested gives 5.88% which isn't there.

User Pavel Samokha
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