CFA Level I · CFA Level I Exam · Exchange Rate Calculations
The spot rate for JPY/USD is 150.00 and the spot rate for CHF/USD is 0.9000. The implied cross rate JPY/CHF is closest to:
The JPY/CHF cross rate is 150.00 divided by 0.9000, which is about 166.67 yen per Swiss franc. Both quotes have USD as base, so dividing the price currencies cancels the dollar.
- A135.00
- B150.00
- C166.67Correct
Explanation
JPY/CHF = (JPY/USD)/(CHF/USD) = 150.00/0.9000 = 166.67. Multiplying instead gives 135.00, which is the error.
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