Kwamina Ansa have just graduated from the University of Ghana and is leaving on a vacation to see relatives aboard. Kwanina wishes to spend usd 1,000 each in Germany, New Zealand, and Great Britain (usd 3,000 in total). Access Bank Ghana offers him the following bid-ask quotes: usd/eur 1.304-1.305, usd/nzd 0.670.69, and usd/gbp 1.90-1.95. If Kwamina accepts these quotes, how many eur, nzd, and gbp does he have at departure? If Kwamina returns with eur 300, nzd 1,000, and gbp 75, and the exchange rates are unchanged, how many usd does he have? Q2 Suppose that instead of selling his remaining eur 300 upon return home, he wants to sell them in Great Britain. At the train station, he was offered gbp/eur 0.66-0.68, while a bank three blocks from the station offers gbp/eur 0.665-0.675. At what rate is he willing to sell his eur 300? How many gbp will you receive?
Q1 Kwamina Ansa have just graduated from the University of Ghana and is leaving on a vacation to see relatives aboard. Kwanina wishes to spend usd 1,000 each in Germany, New Zealand, and Great Britain (usd 3,000 in total). Access Bank Ghana offers him the following bid-ask quotes: usd/eur 1.304-1.305, usd/nzd 0.670.69, and usd/gbp 1.90-1.95.
If Kwamina accepts these quotes, how many eur, nzd, and gbp does he have at departure?
If Kwamina returns with eur 300, nzd 1,000, and gbp 75, and the exchange rates are unchanged, how many usd does he have?
Q2 Suppose that instead of selling his remaining eur 300 upon return home, he wants to sell them in Great Britain. At the train station, he was offered gbp/eur 0.66-0.68, while a bank three blocks from the station offers gbp/eur 0.665-0.675. At what rate is he willing to sell his eur 300? How many gbp will you receive?
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