Suppose a U.S. multinational company needs to buy Canadian dollar but the exchange rate between US dollar and Canadian dollar is not favorable for the company because of high bid-ask spread. However, the currency pair between Canadian dollar and Japanese Yen is favorable due to its low bid-ask spread. So, you want to find the cross-exchange rate between Canadian dollar and Japanese Yen. Assume the Canadian dollar is equal to $.76, and the Japanese Yen is equal to $.007. The value of the Canadian dollars is Japanese Yen. N 93.67 108.57 164.54 118.34

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
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Suppose a U.S. multinational company needs to buy Canadian dollar but the exchange rate
between US dollar and Canadian dollar is not favorable for the company because of high
bid-ask spread. However, the currency pair between Canadian dollar and Japanese Yen is
favorable due to its low bid-ask spread. So, you want to find the cross-exchange rate
between Canadian dollar and Japanese Yen. Assume the Canadian dollar is equal to $.76,
and the Japanese Yen is equal to $.007. The value of the Canadian dollars is
Japanese Yen.
93.67
108.57
164.54
118.34
27
Transcribed Image Text:Suppose a U.S. multinational company needs to buy Canadian dollar but the exchange rate between US dollar and Canadian dollar is not favorable for the company because of high bid-ask spread. However, the currency pair between Canadian dollar and Japanese Yen is favorable due to its low bid-ask spread. So, you want to find the cross-exchange rate between Canadian dollar and Japanese Yen. Assume the Canadian dollar is equal to $.76, and the Japanese Yen is equal to $.007. The value of the Canadian dollars is Japanese Yen. 93.67 108.57 164.54 118.34 27
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