(Solved): Q1 Given the following observed quotation for the HKD/EGP: (a) What type of quotation is this (dire ...

Q1 Given the following observed quotation for the HKD/EGP: (a) What type of quotation is this (direct / indirect)? (b) Do you expect this quotation to be found in either retail or interbank markets? Why? (c) The bid quote is a quote for the dealer to buy which currency in terms of the other? (i.e., which will we call the 'Foreign Currency')? (d) Write this quotation in direct terms for the dealer to buy and sell the EGP. (e) Write this quotation in direct terms for the dealer to buy and sell the HKD. (f) Write this quotation in indirect terms for the dealer to buy and sell the EGP. (g) Write this quotation in indirect terms for the dealer to buy and sell the HKD. (h) Starting with 100,000 Egyptian Pounds, how many Hong Kong Dollars would a trader have after converting with this dealer? (i) Starting with 100,000 Egyptian Pounds, how many Egyptian Pounds would a trader have after completing a round trip with this broker (converting and then converting back)?