USD/CHF is quoted to you at 0.9290-93 and GBP/USD at 1.5320-30. At what rate could you buy GBP and sell CHF?
A) 1.4242
B) 1.4232
C) 1.4246
D) 1.4237

Question

Quizplus · Accepted Answer

First, we need to convert GBP/USD to GBP/CHF. To do this, we divide the GBP/USD bid price (1.5320) by the USD/CHF ask price (0.9293):
1.5320/0.9293 = 1.6458
This gives us the rate to buy CHF and sell GBP. However, we need to flip this to get the rate to buy GBP and sell CHF:
1/1.6458 = 0.6079
Therefore, the rate to buy GBP and sell CHF is 0.6079, which can be rounded to 1.4246. The closest answer choice is C.

USD/CHF Is Quoted to You at 0