- CFA Exams
- CFA Level I Exam
- Study Session 5. Economics (2)
- Reading 18. Currency Exchange Rates
- Subject 2. Exchange Rate Quotations
CFA Practice Question
The British pound sterling has a bid price of $1.4419 and an ask price of $1.4428. What is the bid-ask spread?
A. 0.62%
B. 0.09%
C. 0.062%
Explanation: The bid-ask spread is computed as follows: Percent spread = (Ask price - Bid price)/Ask price X 100, or 1.4428 - .4419/1.4428 X 100 = 0.062%.
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