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Cross rates

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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

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Solution Summary

The solution calculates cross rates, given spot quotes.

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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) ...

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