Final answer:
The correct answer is C. €0.6623 and €0.6667, which are the inverse conversions of the $/€ bid and ask prices using simple division.
Step-by-step explanation:
The correct corresponding €/$ bid and ask prices for the given $/€ bid and ask prices are C. €0.6623 and €0.6667.
To find the inverse of the bid and ask prices, divide 1 by the respective $/€ rates. For the bid price, 1 / 1.51 gives €0.6623, and for the ask price, 1 / 1.50 gives €0.6667.
Exchange rates express how much one currency is worth in terms of another currency. When converting from $/€ to €/$, one needs to calculate the reciprocal of the given rates. The bid price of $1.50/€ implies that you can buy €1 for $1.50, so the corresponding bid price in €/$ is the amount of euros you get for one dollar, which is 1 divided by 1.50, resulting in €0.6667. Similarly, the ask price of $1.51/€ means that you can sell €1 for $1.51. Hence, the corresponding ask price in €/$ is 1 divided by 1.51, leading to €0.6623.
It's important to note that the lower value becomes the ask price and the higher value becomes the bid price when the rates are inversed because buyers will always want to buy low (€0.6623) and sellers will always want to sell high (€0.6667). This example demonstrates the impact of exchange rates on international trade as well, similar to how it affected a French firm's earnings in U.S. dollars and subsequent conversions back into euros.