Question #274773

The following are indirect quotations of the dollar against the Swiss franc, the Japanese yen, and the British pound: $1 = SF1.4814 – 1.4828 $1 = ¥124.26 – 124.37 $1 = £0.6419 – 0.6428 (a) Calculate the midpoints in each rate and the direct quotation of each of the above rates. (b) Calculate the cross rates between (i) the Swiss franc and the Japanese yen, (ii) the Swiss franc and the euro, and (iii) the Japanese yen and the euro.


1
Expert's answer
2021-12-05T18:56:51-0500

a) Swiss franc:

1.4814+1.48282=1.4821\frac{1.4814+1.4828}{2}=1.4821  midpoint; 11.4821=0.6747\frac{1}{1.4821}=0.6747 direct quotation.

Japanese yen:

124.26+124.372=124.32\frac{124.26+124.37}{2}=124.32  midpoint; 1124.32=0.008\frac{1}{124.32}=0.008 direct quotation.

British pound:

0.6419+0.64282=0.6424\frac{0.6419+0.6428}{2}=0.6424  midpoint; 10.6424=1.56\frac{1}{0.6424}=1.56 direct quotation.

b) i) 0.6747124.32=83.880.6747*124.32=83.88

ii) 0.67470.6424=0.43340.6747*0.6424=0.4334

iii) 0.0080.6424=0.00510.008*0.6424=0.0051


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!
LATEST TUTORIALS
APPROVED BY CLIENTS