Cross Rate Given these two exchange rates,$1 = 11.25 Mexican peso and $1 = €0.7521,compute the cross rate between the Mexican peso and the euro.State this exchange rate in pesos and in euros.

Question

Quizplus · Accepted Answer

To find the cross rate, divide the peso per dollar rate by the euro per dollar rate: 11.25 / 0.7521 = 14.9589 pesos per euro. The reciprocal gives euros per peso: 1 / 14.9589 = 0.0669 euros per peso.

Cross Rate Given These Two Exchange Rates,$1 = 11