An Australian firm asks the bank for a SFr/AS quote because it received SFr and wants to change it to AS. A bank is quoting the following exchange rates against the US dollar for the Swiss franc and the Australian dollar: SFr/USS = 1.4950-60 AS/US$ = 1.5245-50 Calculate the cross bid rate for the SFr/AS by identifying the correct formula in the attached formula sheet. One of the following answers will be correct: a. 1.0201 b. 1.0213 c. 0.9813 d. 0.9803
An Australian firm asks the bank for a SFr/AS quote because it received SFr and wants to change it to AS. A bank is quoting the following exchange rates against the US dollar for the Swiss franc and the Australian dollar: SFr/USS = 1.4950-60 AS/US$ = 1.5245-50 Calculate the cross bid rate for the SFr/AS by identifying the correct formula in the attached formula sheet. One of the following answers will be correct: a. 1.0201 b. 1.0213 c. 0.9813 d. 0.9803
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 1ST
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