FUND. OF FINANCIAL MGMT CONCISE (LL)
FUND. OF FINANCIAL MGMT CONCISE (LL)
9th Edition
ISBN: 9781337539319
Author: Brigham
Publisher: CENGAGE L
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Chapter 17, Problem 8P
Summary Introduction

To determine: The exchange rate of pound in terms of krona.

Introduction:

Cross Rate:

The rate, which indicates the conversion rate for currencies of two different countries, which can be obtained  in exchange of a currency of a third country is a cross rate. Both different currencies are converted into a common third currency for the purpose of comparison.

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Suppose the exchange rate between the U.S. dollar and the Swedish kronawas 7.97 krona =$1, and the exchange rate between the dollar and the British pound was£1 = $1.29. What would be the exchange rate between Swedish kronas and pounds?
Suppose the exchange rate between the U.S. dollar and the Swedish krona was 9.1 krona = $1 and the exchange rate between the dollar and the British pound was £1 = $1.3. What would be the exchange rate between Swedish kronas and pounds?
Suppose the exchange rate between the U.S. dollar and the Swedish krona was 10.0 krona = $1, and the exchange rate between the dollar and the British pound was £1 = $1.5. What would be the exchange rate between Swedish kronas and pounds? Round your answer to two decimal places.
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