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The follow quote is given for the AUD/USD: 0.69915/31. What is closest to the bid-ask spread in percentage terms?

a) 0.04%
b) 0.03%
c) 0.02%
d) 0.01%

1 Answer

6 votes

Final answer:

The bid-ask spread for the AUD/USD currency pair in percentage terms is about 0.02%, which is calculated by subtracting the bid price from the ask price, dividing by the ask price, and multiplying by 100.

Step-by-step explanation:

The question is asking to calculate the bid-ask spread in percentage terms for the currency pair AUD/USD, given the quote 0.69915/31.

To find the bid-ask spread, we subtract the bid price from the ask price and then divide by the ask price. We can then multiply by 100 to get the percentage.

Spread = (Ask - Bid) / Ask * 100%

Spread = (0.69931 - 0.69915) / 0.69931 * 100%

Spread = 0.00016 / 0.69931 * 100%

Spread ≈ 0.0229%

Therefore, the closest answer to the bid-ask spread in percentage terms is 0.02%, which corresponds to option c).

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