Question

8. Suppose the spot ask exchange rate, S^a($|#), is $1.90 = #1.00 and the spot bid exchange rate, S^b($|#), is $1.89 = #1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread? also illustrate with some concrete examples in this process to be easier understandable concept to make students who have roughly derivative and international financial knowledge understand this procedure thoroughly. Thank you so much for your help.

          8. Suppose the spot ask exchange rate, S^a($|#), is $1.90 = #1.00 and the spot bid exchange rate, S^b($|#), is $1.89 = #1.00. If you were to buy $10,000,000 worth of British pounds and then sell them five minutes later, how much of your $10,000,000 would be "eaten" by the bid-ask spread?

also illustrate with some concrete examples in this process to be easier understandable concept to make students who have roughly derivative and international financial knowledge understand this procedure thoroughly. Thank you so much for your help.

8. Suppose the spot ask exchange rate, S^a(|#), is1.90 = #1.00 and the spot bid exchange rate, S^b(|#), is1.89 = #1.00. If you were to buy 10,000,000 worth of British pounds and then sell them five minutes later, how much of your10,000,000 would be "eaten" by the bid-ask spread?

also illustrate with some concrete examples in this process to be easier understandable concept to make students who have roughly derivative and international financial knowledge understand this procedure thoroughly. Thank you so much for your help.

Added by Jsp P.

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