A foreign exchange dealer is willing to buy the new zealand dollar (nz$) at $0.7621/nz$ and will sell it at a rate of $0.7714/nz$. what is the bid-ask spread on the danish krone? (round your final percentage answer to two decimal place places.)

Question

Mathematics

Heidi Delgado

18 December, 00:47

A foreign exchange dealer is willing to buy the new zealand dollar (nz$) at $0.7621/nz$ and will sell it at a rate of $0.7714/nz$. what is the bid-ask spread on the danish krone? (round your final percentage answer to two decimal place places.)

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Answers (1)

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String Bean · Answer 1

First, find the actual difference / spread between the buy and sell rates:

$0.7714 - $0.7621 = $0.0093.

To find the percentage, we need to divide either given amount ($0.7621 or $0.7714) and to multiply the result by 100%:

($0.0093 / $0.7714) * 100% = 1.21%