Question
Assume that you are a resident of Stockholm, Sweden, who wants to visit Australia to see kangaroos. You visit a BigBank in Stockholm to buy
Assume that you are a resident of Stockholm, Sweden, who wants to visit Australia to see kangaroos. You visit a BigBank in Stockholm to buy Australian dollars with Skr10,000. The bank reports that todays exchange (spot) rate between the Swedish krona and the US dollar is Skr9.8421/US$, and the exchange rate between the Australian dollar and the US dollar is A$1.4649/US$, respectively. If you sell Skr10,000 to the bank at the cross rate (at this moment, the cross rate becomes a market rate), how much Australian dollars will you get from the bank? A$1,388 AS1,488 A$1,588 A$1,688
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