Question

Assume that the bank's bid quote for the Mexican peso is $.126 and the ask price is $.129. If you have Mexican pesos, what is the amount of pesos that you need to purchase $100,000?

1) 12,600
2) 775,194
3) 793,651
4) 12,900

Answer 1

You would need approximately 775,194 Mexican pesos to purchase $100,000, using the ask price of $0.129 per peso.

Step-by-step explanation:

The question is about finding out how many Mexican pesos you would need to buy $100,000 given a bid quote of $0.126 and an ask price of $0.129. Since you are buying dollars, you will use the bank's ask price for the peso, which is $0.129 per peso. To find the number of pesos needed to purchase $100,000, you divide the amount you want to buy ($100,000) by the ask price ($0.129).

The calculation would look like this: $100,000 ÷ $0.129 ≈ 775,194 pesos.

Therefore, you would need approximately 775,194 Mexican pesos to purchase $100,000.