Question
In: Finance
Suppose the current spot rates are $.135/MXN bid and $.140/MXN ask, combined with current spot rates of €.775/$ bid and €.785/$ ask.
Suppose the current spot rates are $.135/MXN bid and $.140/MXN ask, combined with current spot rates of €.775/$ bid and €.785/$ ask. What are the MXN/€ bid and MXN/€ ask prices? (to 4 decimal places)
MXN/€ bid:
MXN/€ ask
Solutions
Expert Solution
The bid price is computed as follows:
= ($ / € 0.785) x (MXN / $ 0.140)
= MXN 9.0992 / €
The ask price is computed as follows:
= ($ / € 0.775) x (MXN / $ 0.135)
= MXN 9.5579 / €
Please ask in case of any query
jeff jeffy answered 2 years agoRelated Solutions
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