3.1 Citigroup quotes Danish kroner as DKK5.62/$ Bid and DKK5.87/$ Ask." a. Which currency is...
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3.1 Citigroup quotes Danish kroner as DKK5.62/$ Bid and DKK5.87/$ Ask." a. Which currency is Citigroup buying at the DKK 5.62/$ bid rate, and which currency is Citigroup selling at the DKK5.87/$ offer rate? b. What are the bid and ask prices in American terms? Which currency is Cit- igroup buying and which is Citigroup selling at these prices? c. With DKK in the numerator, the DKK5.62/$ Bid and DKK5.87/$ Ask" quotes are indirect quotes for a U.S. resident. What are the bid and ask prices in direct terms for a U.S. resident? Which currency is Citigroup buying and which currency is it selling at these prices? d. If you sell $1 million to Citigroup at a bid price of DKK5.62/S and simulta- neously buy $1 million at their offer price of DKK5.87/S, how many Danish krona ("krona" is the plural of kroner) will you make or lose? What is Cit- igroup's kroner profit or loss on the transaction
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