Question

If the bid/ask quote from a dealer was 0.7402/4 AUD/USD, then the bid/ask quote in USD/AUD would be closest to:

a) 1.3511/1.3515
b) 1.3462/1.3466
c) 1.3515/1.3519
d) 1.3466/1.3470

Answer 1

The bid/ask quote in USD/AUD can be found by taking the reciprocal of the bid/ask quote in AUD/USD. So, if the bid/ask quote from the dealer was 0.7402/4 AUD/USD, the bid/ask quote in USD/AUD would be closest to 1.3511/1.3515.

Step-by-step explanation:

The bid/ask quote in USD/AUD can be found by taking the reciprocal of the bid/ask quote in AUD/USD. So, if the bid/ask quote from the dealer was 0.7402/4 AUD/USD, the bid/ask quote in USD/AUD would be closest to 1/4 and 1/0.7402. Solving for decimal values, we get approximately 0.25 and 1.3511 respectively. Therefore, the correct answer is a) 1.3511/1.3515.