Question

The spot rate for the British pound is £.7169 = $1 and the Canadian dollar is Can$1.0717 = $1.What is the £/Can$ cross-rate?

Select one:

a. £.8362/Can$

b. £1.5780/Can$

c. £.6689/Can$

d. £.6175/Can$

e. £1.4949/Can$

Answer 1

- Spot rate for the British pound per US $ is £0.7169 per $1

- Spot rate for the Canadian dollar per US $ is Can$1.0717 per $1

Calculating the £/Can$ cross-rate:-

£ per Can$ = British pound per US $*(1/Canadian dollar per US $)

£ per Can$ = 0.7169*(1/1.0717)

£ per Can$ = 0.6689

So, £.6689/Can$. Option C

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answered by: anonymous