Assume that you want to invest in Thailand and therefore need to exchange U.S. dollars for Thai baht. You are at the bank and see that, depending on whether you use the bid or the ask rate, you have to pay either $10,000,000 or $11,000,000 to get a certain amount of baht. Which amount is correct?
a. It is not possible to tell without knowing which amount was calculated with which exchange rate.
b. It is not possible to tell without knowing the bid and ask rate as well as the desired amount in baht.
c. It has to be $10,000,000.
d. It has to be $11,000,000.
e. It could be either $10,000,000 or $11,000,000
.D
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What will be an ideal response?
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