A bank quotes the following rates: chf/usd 2.5110-2.5140 and jpy/usd 245246. What is the minimum jpy/chf bid and the maximum ask cross rate that the bank would quote?

A. First calculate the jpy/chf bid rate, the rate at which the bank buys chf for jpy. Doing the calculations in two parts, we have:

(a)The bank sells jpy, and it buys usd at jpy/usd 245.

(b)The bank sells usd, and it buys chf at chf/usd 2.5140. jpy/usd245Thus the rate is: chf/usd2.5140 = [jpy/chf]bid 97.4543.