Forex Answer

Answer $90.81

Lesson 1

Always double check the teller’s ability to count.  Last time I checked a $50 bill plus a $5 bill equals $55….even if it IS Australian currency.

Lesson 2

The spread between what they buy foreign currency for and what they sell it for is much larger than what is quoted on the the electronic exchanges.

Conclusions

I will accept foreign currency as a tip.  However, if I am accepting it as payment for lapdances, I will charge a bit of a premium on certain currencies to overcome the bid/ask spread at the exchange.  As you can see, even though the Canadian Dollar and Australian Dollar are increasing in value relative to the American Dollar, it still isn’t a 1:1 ratio at check-out.  I will accept Euros at a 1:1 ratio…have to look up British pounds, I’m pretty sure they are 2:1.

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