Cross rates
Spot Quotes:
USD/EUR 1.2823-27
YEN/USD 107.48-53
USD/GBP 1.8235-40
CAD/USD 1.2235-42
Calculate the following cross rates:
YEN/CAD, EUR/GBP, CAD/GBP, EUR/CAD
https://brainmass.com/economics/international-economies/cross-rates-28551
Solution Preview
YEN/CAD
(YEN/CAD)bid = (YEN / USD )bid x ( USD / CAD) bid
But ( USD / CAD) bid = 1/ (CAD/USD) ask
Therefore
(YEN/CAD)bid = (YEN / USD )bid / ( CAD / USD) ask
(YEN/CAD)bid = 87.80 =107.48/1.2242
Similarly
(YEN/CAD)ask = (YEN / USD )ask x ( USD / CAD) ask
But ( USD / CAD) ask = 1/ (CAD/USD) ...
Solution Summary
The solution calculates cross rates, given spot quotes.
$2.19