Q6. An analyst observes that the exchange rate for Mexican pesos (MXN) is 8 per U.S. dollar (USD), and the exchange rate for Polish zlotys (PLN) is 6 per U.S. dollar. The MXN/PLN exchange rate is closest to:

A)   0.750.

B)   14.000.

C)   1.333.

Q7. The current spot rates for currency exchange are as follows: Thai Baht to $ of 0.02240 THB/$ and Australian Dollar (AUD) to Thai Baht of 23.89923 AUD/THB. What is the $/AUD spot cross exchange rate?

A)    0.00094.

B)    0.53534.

C)    1.86796.

Q8. Given the following bid-ask spreads, calculate the SF/DKK bid ask spread:  

SF/$ bid-ask 1.3096 − 1.4528  

DKK/$ bid-ask 2.4365 − 2.5843

A)     1.6771 − 1.9733.

B)     0.53749 − 0.56216.

C)     0.50675 − 0.59627.

Q9. If the CAD is trading at 0.6403 USD/CAD and the GBP is trading 2.5207 CAD/GBP, the USD/GBP exchange rate is:

A)   0.6196 USD/GBP

B)   1.6140 USD/GBP.

C)   3.9367 USD/GBP.

Q10. If the spot exchange rate between the British pound and the U.S. dollar is 0.7775 ₤/$, and the spot exchange rate between the Canadian dollar and the British pound is 1.8325 CAD/₤, what is the U.S. dollar/Canadian dollar spot cross exchange rate?

A)      0.70186.

B)      1.42477.

C)      0.42428.

答案和详解如下：

Q6. An analyst observes that the exchange rate for Mexican pesos (MXN) is 8 per U.S. dollar (USD), and the exchange rate for Polish zlotys (PLN) is 6 per U.S. dollar. The MXN/PLN exchange rate is closest to:

A)   0.750.

B)   14.000.

C)   1.333.

Correct answer is C)         

The cross rate of MXN/PLN is 8 MXN/USD / 6 PLN/USD = 1.333 MXN/PLN.

Q7. The current spot rates for currency exchange are as follows: Thai Baht to $ of 0.02240 THB/$ and Australian Dollar (AUD) to Thai Baht of 23.89923 AUD/THB. What is the $/AUD spot cross exchange rate?

A)    0.00094.

B)    0.53534.

C)    1.86796.

Correct answer is C)         

The cross rate between $ and AUD is calculated in the following manner:

Step 1:  Multiply the two quotes together (THB will cancel out) to obtain AUD/$: 0.02240 THB/$ * 23.89923 AUD/THB = 0.53534 AUD/$.

Step 2: Take the reciprocal of this result to obtain $/AUD: 1 / 0.53534 AUD/$ = 1.86796 $/AUD

An alternative calculation method is as follows:

Step 1: Take the reciprocal of the THB/$ quote:  1 / 0.02240 THB/$ = 44.64286 $/THB

Step 2: Divide this result by the AUD/THB quote:   44.64286 $/THB / 23.89923 AUD/THB = 1.86796 $/AUD

Q8. Given the following bid-ask spreads, calculate the SF/DKK bid ask spread:  

SF/$ bid-ask 1.3096 − 1.4528  

DKK/$ bid-ask 2.4365 − 2.5843

A)     1.6771 − 1.9733.

B)     0.53749 − 0.56216.

C)     0.50675 − 0.59627.

Correct answer is C)         

Set up a bid-ask matrix using:

SF/$ bid-ask 1.3096 − 1.4528

DKK/$ bid-ask 2.4365 − 2.5843

(1.3096 SF/$) / (2.5843 DKK/$) = 0.50675 SF/DKK

(1.4528 SF/$) / (2.4365 DKK/$) = 0.59627 SF/DKK

Q9. If the CAD is trading at 0.6403 USD/CAD and the GBP is trading 2.5207 CAD/GBP, the USD/GBP exchange rate is:

A)   0.6196 USD/GBP

B)   1.6140 USD/GBP.

C)   3.9367 USD/GBP.

Correct answer is B)

(0.643USD/CAD) × (2.5207CAD/GBP) = 1.6140 USD/GBP.

Q10. If the spot exchange rate between the British pound and the U.S. dollar is 0.7775 ₤/$, and the spot exchange rate between the Canadian dollar and the British pound is 1.8325 CAD/₤, what is the U.S. dollar/Canadian dollar spot cross exchange rate?

A)      0.70186.

B)      1.42477.

C)      0.42428.

Correct answer is A)

First, convert 0.7775 ₤/$ to 1/0.7775 = 1.28617 $/₤.

Then, divide 1.28617 $/₤ by 1.8325 CAD/₤ = 0.70187 $/CAD.