A currency trader observes the following quotes in the spot market: 1 U.S.dollar =1.28 Japanese yen
1 British pound =2.25 Swiss francs
1 British pound =1.65 U.S.dollars
Given this information,how many yen can be purchased for 1 Swiss franc? Do not round the intermediate calculations and round the final answer to four decimal places.
A) 0.8354
B) 1.1733
C) 0.9762
D) 0.9199
E) 0.9387

Question

Quizplus · Accepted Answer

First, we need to find the exchange rate between Swiss francs and U.S. dollars using the given information about British pounds. 1 British pound = 1.65 U.S. dollars and 1 British pound = 2.25 Swiss francs. Therefore, 1 Swiss franc = 1.65 / 2.25 U.S. dollars = 0.7333 U.S. dollars. Then, since 1 U.S. dollar = 1.28 Japanese yen, 1 Swiss franc = 0.7333 * 1.28 Japanese yen = 0.9387 Japanese yen.

A Currency Trader Observes the Following Quotes in the Spot