In Q.2 & Q.3 of Revision Test Paper for May 2010 exam,Spot Rates & Forward Rates are given as follows:-
Spot Rate(Pound per Euro): 1.7820 + 0.0002
means Spot Rate(Pound per Euro): 1.7820/1.7822
One month forward rate(Pound per Euro): 1.7829 + 0.0003.
means Forward Rate(Pound per Euro): 1.7829/1.7832.
It's clear that this information is for finding Bid ask rates.My Ques. is that why both + & - signs are used here?As Ask rate is always more than Bid rate so only + sign should be used in above giving information of Q. to find out ask rate.
It's possible that I m overlooking any concept here.So, please clear me about the purpose of using minus sign in the Q.Or suggest about ignoring this minus sign, if there is no other concept here.
Thanks.
CAclubindia
