1.Given an exchange rate of 0.9250 USD/CAD and 1.6250 USD/SF what is exchange rate quoted in CAD/SF? A) 1.7568. B) 1.5032. C) 1.6535. D) 0.5692. The correct answer was A) (1.6250 USD/SF)/(0.9250 USD/CAD) = 1.7568 CAD/SF 2.A Mexican dealer gives a quote of 8.00 bid / 8.10 ask (MXN/USD) and a London dealer quotes the U.S. dollar at 2.00 bid / 2.1 ask (GBP/USD). What is the MXN/GBP bid and ask from the perspective of a Mexican dealer? A) 4.00 - 4.05. B) 3.81 - 3.86. C) 2.47 - 2.63. D) 3.81 - 4.05. The correct answer was D) This result is determined as follows: Step 1: Invert GBP quote. First, we need to invert the GBP quotes to make the currency units USD/GBP. Then, when we multiply by the MXN/USD quote we will have the correct MXN/GBP units. (Remember that when you take the reciprocal of a quote, the bid becomes the ask and vice versa. So, for the bid we take the given ask) Bid: 1.00000 / 2.10000GBP/USD = 0.47619USD/GBP
Ask: 1.00000 / 2.00000GBP/USD = 0.50000USD/GBP
Step 2: Calculate MXN/GBP bid-ask Prices. Bid: 8.00000MXN/USD × 0.47619USD/GBP = 3.80952MXN/GBP, or 3.81MXN/GBP. Ask: 8.10000MXN/USD × 0.50000USD/GBP = 4.05000MXN/GBP, or 4.05MXN/GBP. Thus, the MXN/GBP bid-ask is: 3.81MXN/GBP - 4.05MXN/GBP. 3.The Japanese yen is trading at 115.2200 ¥/$ and the Danish krone (DKK) is trading at 16.4989 ¥/DKK. The $/DKK exchange rate is: A) 0.1432 $/DKK. B) 6.9835 $/DKK. C) 1.9010 $/DKK. D) 0.5260 $/DKK. The correct answer was A) The cross rate between $ and DKK is calculated in the following manner: $/¥ x ¥/DKK = (1/115.2200) x 16.4989 = 0.1432 $/DKK (the Yen cancels out.) 4.If the spot exchange rate between the British pound and the U.S. dollar is 0.7775 ₤/$, 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) 0.42428. B) 1.42477. C) 0.70186. D) 2.35691. The correct answer was C) First convert 0.7775 ₤/$ to 1/0.7775 = 1.28617 $/₤. Then divide 1.28617 $/₤ by 1.8325 CAD/₤ = 0.70187 $/CAD 5.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) 1.6140 USD/GBP. B) 0.6196 USD/GBP C) 3.1610 USD/GBP. D) 3.9367 USD/GBP. The correct answer was A) (0.643USD/CAD)*(2.5207CAD/GBP) = 1.6140 USD/GBP. | 
发表于 2008-5-12 11:59
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