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The following quote is given for the GBP/USD: 1.26975/96. What is closest to the bid ask spread in percentage terms?

a) 1.65%
b) 1.28%
c) 1.40%
d) 1.50%

User Bitshift
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1 Answer

5 votes

Final answer:

The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. The closest answer to the bid ask spread in percentage terms is 1.65%.

Step-by-step explanation:

The bid-ask spread is the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) for a particular security or currency. In this case, the bid is 1.26975 and the ask is 1.26996. To calculate the spread in percentage terms, we can use the formula: (Ask - Bid) / Ask * 100.

(1.26996 - 1.26975) / 1.26996 * 100 = 0.0165 = 1.65%

Therefore, the closest answer to the bid ask spread in percentage terms is a) 1.65%

User Tiny
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