Question

Suppose pound sterling is quoted at $1.4419-36, and the Swiss franc is quoted at $0.6250-67. What is the direct quote for the pound in Zurich?

Answer 1

direct quote for pound in zurich => swiss francs / pound is to be known.

given rates

$ / pounds = 1.4419-36

$/ swiss franc = $0.6250-67.

now,

bid rate for swiss franc / pound = ($/pound bid rate) * (1 / ($/ swiss fran ) ask rate)

=> (1.4419) * (1/0.6267)

=>$2.3008.

ask rate for (swiss franc / pound) = ($/ pound ask rate) * (1/($/ swiss franc) bid rate)

=>$1.4436 *(1/0.6250)

=>$2.3098.

therefore, .

direct quote will be = 2.3008-98 swiss francs / pound.