Purchase Solution

Cross rates

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution
Solution Summary

The solution calculates cross rates, given spot quotes.

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) ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Cross-rate

    The cross would be based on the given ask rates (even if you are the sole banker quoting this rate) since if the rate is not based on the given rates, customer can convert SFr to $ and then to pounds.

  • Cross Exchange Rates between Canadian dollar and Japanese ye

    286304 Cross Exchange Rates between Canadian dollar and Japanese yen See attached file. Above is a chart designed to display the cross rates of eight major world currencies.

  • International Cross-exchange rates

    The international cross-exchange rates are analyzed. The formula below is how you find the cross rates between currencies.

  • Bid Ask Yen Cross Rate

    Current market rates are: Y/$ 101.37 - 85 A$/$ 1.2924 - 44 What bid and ask yen cross rates would you quote on a spot Australian Dollar?

  • Bid and ask cross rates, outright cross rates

    This posting gives detailed answers to the questions regarding Bid and ask cross rates, outright cross rates, forward premium/discounts.

  • Cross rates and Purchasing Power Parity

    Cross rates, Purchasing Power Parity.

  • Financial Management Questions on Net worth, Shares, exchange rates

    This Solution deals with calculation of related values in the capital structure, valuation in rights offering, exchange rates and cross currency rates.

  • Exchange Rates and Purchasing Power Parity

    P19-8: CROSS RATES Suppose the exchange rate between the U.S. dollar and the Swedish krona was 6.3 krona = $1 and the exchange rate between the dollar and the British pound was 1pound = $1.64.

  • Exchange rates

    257519 Ch 17: Exchange Rates, spot prices, indirect quotes, arbitrage, cross rates Please find the information in the attachment. Show all formulas and calculations and send in a word or excel document. 17-1.

  • Cross Rate Between Francs and Pounds

    313965 Cross Rates Suppose the exchange rate between U.S, dollars and the Swiss franc was SFr1.6=$1, and the exchange rate between U.S dollars and British pound was L1=$1.50. What was the cross rate between francs and pounds?

View More Related Solutions