Part 2. Cross rates

The highest bid and lowest ask in the NY currency market for thelisted currencies:

Australian dollar

AUD/USD

0.7190

Chinese yuan

USD/CNY

6.7473

Danish krone

USD/DKK

6.5451

Euro

EUR/USD

1.1415

Jamaican dollar

USD/JMD

132.88

Japanese yen

USD/JPY

109.55

New Zealand dollar

NZD/USD

0.6839

West African franc

USD/XOF

279.50

1 a. What is the implied cross rate for exchanging Australiandollars and New Zealand dollars? What is the base currency in thiscross rate?

b. If a customer sells A$1m in exchange for NZ$, how many NZ$will the customer receive?

2 a. What is the implied cross rate for exchanging Chinese yuanand Danish krone? Specify which currency is the base currency inyour answer.

b. If a customer sells Kr 1m in exchange for Â¥, how many Â¥ willthe customer receive?

Question

Part 2. Cross rates

The highest bid and lowest ask in the NY currency market for thelisted currencies:

1 a. What is the implied cross rate for exchanging Australiandollars and New Zealand dollars? What is the base currency in thiscross rate?

b. If a customer sells A$1m in exchange for NZ$, how many NZ$will the customer receive?

2 a. What is the implied cross rate for exchanging Chinese yuanand Danish krone? Specify which currency is the base currency inyour answer.

b. If a customer sells Kr 1m in exchange for Â¥, how many Â¥ willthe customer receive?

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