If AUD/USD is 0.7515/19 and EUR/USD is 1.1592/97, calculate the offer rate for AUD/EUR: Select one: a. 0.6480 b. 1.5417 c. 0.6484 d. 0.6486
Question
If AUD/USD is 0.7515/19 and EUR/USD is 1.1592/97, calculate the offer rate for AUD/EUR:
Select one:
- a. 0.6480
- b. 1.5417
- c. 0.6484
- d. 0.6486
Solution
1. Break Down the Problem
To calculate the offer rate for AUD/EUR, we need to find the bid rate for EUR/USD and the offer rate for AUD/USD. The offer rate for AUD/EUR can be derived using the relationship between these currency pairs.
2. Relevant Concepts
- AUD/EUR can be calculated using the formula:
- The offer rate for AUD/USD is given as 0.7519 (the higher value), and the bid rate for EUR/USD is 1.1592 (the lower value).
3. Analysis and Detail
We can apply the values:
- Offer Rate for AUD/USD (ask price) = 0.7519
- Bid Rate for EUR/USD (buy price) = 1.1592
Now, substitute the values into the formula:
Calculating the value:
4. Verify and Summarize
We calculated the offer rate for AUD/EUR using the provided rates. The calculated value is consistent with the formula used.
Final Answer
The offer rate for AUD/EUR is 0.6484 (option c).
Similar Questions
If USD/JPY is 116.01 and EUR/USD is 1.1597, calculate the (correctly rounded) EUR/JPY rate: Select one: a. 100.0345 b. 134.54 c. 134.5368 d. 100.03
You are a price maker. The bid for the AUD/USD is 0.7463. What price do you need to show to attract a customer wanting to sell AUD?
Calculate the EUR/JPY spot rate using the following spot rates: EUR/USD: 1.1360 USD/JPY: 109.4818 (Round your answer to 2 decimal places)
If it takes 1.25 euros to buy 1 US dollar, the direct quote for the exchange rate is:Group of answer choicesUSD/EURO 0.25EURO/USD 1.00USD/EURO 1.25EURO/USD 0.8
Arun bought a pair of skates at a sale where the discount given was 20%. If the amounthe pays is ₹1,600, find the marked price.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.