To determine how many U.S. dollars it costs to buy 1 British pound based on the given quote GBP/USD, let's break down the information provided:
The quote GBP/USD is expressed as [tex]$1.5869 / 76$[/tex]. In the context of foreign exchange rates, such a notation typically represents two parts: the bid price and the ask price.
- The bid price is the price at which the market (or a specific dealer) will buy a given currency pair. In this context, it would be the price at which someone is willing to buy British pounds in exchange for U.S. dollars.
- The ask price is the price at which the market is willing to sell a given currency pair. This is the price you pay if you want to buy the currency. Here, it represents the price at which someone would need to buy British pounds with U.S. dollars.
In the quote [tex]$1.5869 / 76$[/tex], the bid price (1.5869) shows what you would receive if you were selling pounds and the ask price (1.5876) shows what it would cost to buy pounds.
Given that we need to find out how many U.S. dollars it costs to buy 1 British pound, we look at the ask price. Therefore, the correct amount of U.S. dollars required to buy 1 British pound is $1.5876.
Thus, the correct answer is:
A. 1.5876
