Calculate the current exchange rate GBP/JPY, given these two quotes:USD/JPY 114.20-30GBP/USD 1.6750-60Question 3Select one:a.GBP/JPY 190.71-88b.GBP/JPY 191.29-57c.GBP/JPY 191.40-45d.GBP/JPY 192.07-24
Question
Calculate the current exchange rate GBP/JPY, given these two quotes:USD/JPY 114.20-30GBP/USD 1.6750-60Question 3Select one:a.GBP/JPY 190.71-88b.GBP/JPY 191.29-57c.GBP/JPY 191.40-45d.GBP/JPY 192.07-24
Solution
To calculate the GBP/JPY exchange rate, we need to use the concept of cross rates. Here are the steps:
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First, we need to understand that the GBP/JPY rate can be calculated by multiplying the GBP/USD rate by the USD/JPY rate.
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The given rates are: GBP/USD = 1.6750-60 USD/JPY = 114.20-30
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We calculate the cross rates by multiplying the lower limit of GBP/USD with the lower limit of USD/JPY and the upper limit of GBP/USD with the upper limit of USD/JPY.
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Lower limit: 1.6750 * 114.20 = 191.285 Upper limit: 1.6760 * 114.30 = 191.5888
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Therefore, the GBP/JPY exchange rate is approximately 191.29-191.59.
So, the closest answer is option b. GBP/JPY 191.29-57.
Similar Questions
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