Consider the following table: Bank Quotations £/$ $ € Bid Ask £0.6415 / $ £0.6553 / $ $1.3486 / € $1.3124 / € Suppose Micky Python, a British businessman, wants to convert €550,000 and £500,000 into U.S. dollar under the spot rates as listed above. How much U.S. dollars will Python receive based on the above quotes (that is, how much will be Kane's proceeds from his conversion)? O $1,484,829.30 O $1,329,259.92 O $1,513,256.48 O $1,412,256.35
Consider the following table: Bank Quotations £/$ $ € Bid Ask £0.6415 / $ £0.6553 / $ $1.3486 / € $1.3124 / € Suppose Micky Python, a British businessman, wants to convert €550,000 and £500,000 into U.S. dollar under the spot rates as listed above. How much U.S. dollars will Python receive based on the above quotes (that is, how much will be Kane's proceeds from his conversion)? O $1,484,829.30 O $1,329,259.92 O $1,513,256.48 O $1,412,256.35
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Consider the following table:
Bank Quotations
£/$
$ €
Bid
Ask
£0.6415 / $
£0.6553 / $
$1.3486 / €
$1.3124 / €
Suppose Micky Python, a British businessman, wants to convert €550,000 and £500,000 into
U.S. dollar under the spot rates as listed above. How much U.S. dollars will Python receive
based on the above quotes (that is, how much will be Kane's proceeds from his conversion)?
O $1,484,829.30
O $1,329,259.92
O $1,513,256.48
O $1,412,256.35
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