simple cross curr exchange problem -- need guidance guidance

anshultongia

Given an exchange rate of 0.9250 USD/CAD and 1.6250 USD/SF what is exchange rate quoted in CAD/SF?

A) 0.5692.


B) 1.7568.


C) 1.5032.






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Click for Answer and Explanation


(1.6250 USD/SF) / (0.9250 USD/CAD) = 1.7568 CAD/SF



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* SHOULDNT THE ANSWER BE A???????


schweser pisses me off -- B is only the answer is the it was SF/CAD right?!

ap0258

This is very simple . you want it in CAD/SF right. That means CAD/USD x USD/SF

CAD/USD = 1/0.9250 = 1.081
USD/SF = 1.625

If you multiply both, you get 1.7568

iteracom

thanks drk.. i get it now.. long day