Question
Using the following quotations: GBP / USD 1.2065 / 1.2079 USD / MXN 20.0344 / 20.0957 (a) Create a cross rate between the British Pound
Using the following quotations: GBP / USD 1.2065 / 1.2079 USD / MXN 20.0344 / 20.0957
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(a) Create a cross rate between the British Pound (GBP) and the Mexican Peso (MXN). Present your quotation in direct form as the dealers buy and sell prices for the British Pound (4 decimal places). Show all workings to obtain full marks.
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(b) What is the size of the spread of the cross rate as a percentage of the ask price?
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
8th Edition
0324065914, 9780324065916
