1-Given the following market rates:

Bid rate

Offer rate

USD/MYR

4.0820

4.0850

USD/AUD

1.4114

1.4120

(i)If you are a bank and a Malaysian importer asks for an exchange rate to pay his purchase from Australia. How do you quote the currency rate? Calculate your quotation using the chain rule approach.

(ii)If you are a bank and a Malaysian exporter who wish to convert his export proceeds in in AUD to MYR? Calculate your quotation using the cross rate approach.