A bank is quoting the following exchange rates against thedollar for the Swiss franc and...

A bank is quoting the following exchange rates against the dollar for the Swiss franc and the Australian dollar (i.e., in European terms): SFr/$ = 1.5150-60 and A$/$ = 1.6345-55. An Australian firm asks the bank for a SFr/A$ quote in Swiss terms. What cross-rate would the bank quote?

Solutions

Expert Solution

SFR / USD = 1.5150 / 1.5160

AUD / USD = 1.6345 / 1.6355

SFR / AUD = 0.926 / 0.927

( 1.5150/1.6355 ) / ( 1.5160/1.6345 )

jeff jeffy answered 1 year ago

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