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Rachel Day is planning to visit Germany in May after her graduation. She plans to spend $2000 in Germany. She needs to buy Euros in order to visit Germany. She visit currency traders on Market Street and comes across the following rate:
Bid? Ask
Trader 1: USD 1?€0.8260? €0.8265?
Trader 2: USD 1?€0.8268. €0.8270
a. Where should she convert her dollars into euros? Why?
b. If a German tourist comes to the United States and wants to buy dollars, where should they buy their dollars? Why?
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