A currency trader observes the following quotes in the spot market: $$\begin{array} { l l l }
1 \text { U.S. dollar } = & 10.875 & \text { Mexican pesos } \
1 \text { British pound } = & 7.500 & \text { Danish krone } \
1 \text { British pound } = & 1.65 & \text { U.S. dollars }
\end{array}$$
Given this information,how many Mexican pesos can be purchased for 1 Danish krone?
A) 2.3446
B) 2.0097
C) 2.9188
D) 2.0815
E) 2.3925

Question

A currency trader observes the following quotes in the spot market: $$\begin{array} { l l l } 
1 \text { U.S. dollar } = & 10.875 & \text { Mexican pesos } \
1 \text { British pound } = & 7.500 & \text { Danish krone } \
1 \text { British pound } = & 1.65 & \text { U.S. dollars }
\end{array}$$
Given this information,how many Mexican pesos can be purchased for 1 Danish krone?
A) 2.3446
B) 2.0097
C) 2.9188
D) 2.0815
E) 2.3925

Quizplus · Accepted Answer

The Answer of A currency trader observes the following quotes in the spot market: $$\begin{array} { l l l } 
1 \text { U.S. dollar } = & 10.875 & \text { Mexican pesos } \
1 \text { British pound } = & 7.500 & \text { Danish krone } \
1 \text { British pound } = & 1.65 & \text { U.S. dollars }
\end{array}$$
Given this information,how many Mexican pesos can be purchased for 1 Danish krone?
A) 2.3446
B) 2.0097
C) 2.9188
D) 2.0815
E) 2.3925

A Currency Trader Observes the Following Quotes in the Spot