Country Switzerland (Franc) CHF Euro € USD equivalent BID 0.8653 1.4000 ASK 0.8667 1.4200 What is the BID cross-exchange rate for Euro per Swiss Francs (ie EUR/CHF)?
Country Switzerland (Franc) CHF Euro € USD equivalent BID 0.8653 1.4000 ASK 0.8667 1.4200 What is the BID cross-exchange rate for Euro per Swiss Francs (ie EUR/CHF)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![**USD Equivalent Exchange Rates**
The table below provides the BID and ASK exchange rates for the currencies of Switzerland (Swiss Franc) and the Euro in terms of USD equivalent.
| Country | BID | ASK |
|---------------------------|---------|---------|
| Switzerland (Franc) CHF | 0.8653 | 0.8667 |
| Euro € | 1.4000 | 1.4200 |
**Cross-Exchange Rate Calculation:**
To find the BID cross-exchange rate for Euro per Swiss Franc (EUR/CHF), use the BID rates from the table:
\[ \text{Bid (EUR/CHF)} = \frac{\text{Bid (EUR/USD)}}{\text{Ask (CHF/USD)}} = \frac{1.4000}{0.8667} \]
This calculation gives the cross-exchange rate for converting Swiss Francs to Euros based on the BID prices.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b1ecad0-5c70-472d-9c41-4a2405812f2b%2F2d1a7058-607f-4f70-9a49-cbd2f4a56ee4%2Fcmc35u_processed.png&w=3840&q=75)
Transcribed Image Text:**USD Equivalent Exchange Rates**
The table below provides the BID and ASK exchange rates for the currencies of Switzerland (Swiss Franc) and the Euro in terms of USD equivalent.
| Country | BID | ASK |
|---------------------------|---------|---------|
| Switzerland (Franc) CHF | 0.8653 | 0.8667 |
| Euro € | 1.4000 | 1.4200 |
**Cross-Exchange Rate Calculation:**
To find the BID cross-exchange rate for Euro per Swiss Franc (EUR/CHF), use the BID rates from the table:
\[ \text{Bid (EUR/CHF)} = \frac{\text{Bid (EUR/USD)}}{\text{Ask (CHF/USD)}} = \frac{1.4000}{0.8667} \]
This calculation gives the cross-exchange rate for converting Swiss Francs to Euros based on the BID prices.
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