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Question 34

Question 34

Multiple Choice

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Country	U.S. $ equiv.		Currency per U.S. $
	Tuesday	Monday	Tuesday	Monday
Britain (Pound) £62,500	2.0000	1.9800	0.5000	0.5051
1 Month Forward	2.0100	1.9900	0.4975	0.5025
3 Month Forward	2.0200	2.0000	0.4950	0.5000
6 Months Forward	2.0300	2.0100	0.4926	0.4975
12 Months Forward	2.0400	2.0200	0.4902	0.4950
Euro £62,500	1.5000	1.4800	0.6667	0.6757
1 Month Forward	1.5100	1.4900	0.6623	0.6711
3 Month Forward	1.5200	1.5000	0.6579	0.6667
6 Months Forward	1.5300	1.5100	0.6536	0.6623
12 Months Forward	1.5400	1.5200	0.6494	0.6579

Using the table shown,what is the spot cross-exchange rate between pounds and euro?

A) €1.00 = £0.75
B) £1.33 = €1.00
C) £1.00 = €0.75
D) none of the options

Correct Answer:

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