QUESTION 7 Suppose the quote for pounds in terms of euros is 1.0155 65. Then quo

Question

QUESTION 7 Suppose the quote for pounds in terms of euros is 1.0155 65. Then quote for pounds in terms of euros is 983847 0 956 1.71 O 8432-41 O None of the above 625 poin QUESTION B The Canadian dollar is quoted at C$1.1/5 and the Saiss franc is worth CHF SRS. Find he value of the Canadian dolar in erms of franes Round intermediate steps and your final answer to four decimails Do not use curency symbo's ar wards ing your response AW Ansioera to soe all ansuers Click Save and Subwit to sove wed subwair.Cick

Explanation / Answer

QUESTION 7

{The question seems incorrect, it quotes Pounds in terms of Euros and again asks the same to be calculate. It should ask to quote Euros in terms of Pounds)

Bid-Ask rate for Pounds in terms of Euros is 1.0155/1.065.

When the bid ask rate for 1 currency is given in terms of second currency and you are asked to calculate the quote in terms of first currency, youjust need to follow 2 steps:

1. Inverse the two rates (bid and ask). So the inverse for exchange rate given in question would be (1/1.0155 , 1/1.065) = (0.9847 , 0.9838)

2. Rotate the places of inversed currency rates, Bid becomes ask and ask becomes bid. So the currency rate in question becomes (0.9838 0.9847)

Hence the currency rate for Euros in terms of Pounds is 0.9838-47

QUESTION 8

According to question, 1 USD = 1.1 C$

and 1 USD = 0.59 CHF

This means 1.1C$ = 0.59 CHF

If 0.59 CHF = 1.1C$

Then, 1 CHF = (1.1/0.59)C$ = 1.86C$

Hence, exchange rate for C$ in terms of CHF is: 1.86C$/CHF

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