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You are given the following quoted FX rates: A Bank $ 1.7484/ B Bank 0.8398/ $ C Bank .4280/ After calculating the synthetic cross rate.
You are given the following quoted FX rates: A Bank $ 1.7484/ B Bank 0.8398/ $ C Bank .4280/ After calculating the synthetic cross rate. Which bank and by how much is a currency overvalued/undervalued? a. A Bank rate for US$ is undervalued by 2 US$ cents O b.B Bank rate for US$ is overvalued by 3 US$ cents OC Bank rate for euros ( ) is overvalued by 4 euro cents O d. B Bank rate for euros is undervalued by 5 euro cents
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