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You have the following quotations:GBP/AUD 1.8033-38GBP/NZD 1.9605-09What is the cross rate AUD/NZDQuestion 4Select one:a.1.0869-74b.0.9197-9200c.1.0868-75d.1.0867-74e.1.0868-72f.0.2827-28g.0.2827-29h.0.9195-92

Question

You have the following quotations:GBP/AUD 1.8033-38GBP/NZD 1.9605-09What is the cross rate AUD/NZDQuestion 4Select one:a.1.0869-74b.0.9197-9200c.1.0868-75d.1.0867-74e.1.0868-72f.0.2827-28g.0.2827-29h.0.9195-92

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Solution

To calculate the cross rate, you need to divide the base currency (GBP) of the two pairs. Here's how you do it:

  1. Take the bid (buy) price of GBP/AUD, which is 1.8033, and the ask (sell) price of GBP/NZD, which is 1.9609. Divide the two: 1.8033 / 1.9609 = 0.9197.

  2. Then take the ask price of GBP/AUD, which is 1.8038, and the bid price of GBP/NZD, which is 1.9605. Divide the two: 1.8038 / 1.9605 = 0.9200.

So, the cross rate for AUD/NZD is 0.9197-0.9200. The correct answer is b. 0.9197-9200.

This problem has been solved

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