Purchase Solution

Cross-rate

Not what you're looking for?

Ask Custom Question

You are given the following spot exchange rates:

SFr in Zurich, S(SFr/$): 1.6000-35 SFr/$
£ in NY, S($/£): 1.9810-50 $/£

As a banker in London, you would like to quote a British pound cross-rate for Swiss Franc (i.e., S(£/SFr)). If you anticipate to be the sole banker in the world quoting this cross-rate, what is your quote going to be? Show your work.

Purchase this Solution

Solution Summary

The solution explains how to calculate the cross rate is examined. The British pound cross-rate for Swiss Francs is determined.

Solution Preview

The cross rate would be the rate at which you will buy SFr from the customers. The cross would be based on the given ...

Purchase this Solution


Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Motivation

This tests some key elements of major motivation theories.