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A forex trader from Mumbai collects the below information regarding the exchange rate between INR and USD: Bid Price: INR / USD = 74.2400 Ask

A forex trader from Mumbai collects the below information regarding the exchange rate between INR and USD: Bid Price: INR / USD = 74.2400 Ask Price: INR / USD = 74.2500 You are required to help him with the below questions he has: (a) What is the direct exchange rate of INR-USD for the trader? (b) What is the indirect exchange rate of INR-USD for the trader? (c) What is a cross rate? If the bid and ask rate for USD-EUR are available as USD

1.16776-1.16782/EUR, what would be the bid-ask rates for INR/EUR, using the cross- rate method

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