Concept explainers
a)
To find: The preference of Person X is $100 or £100
Introduction:
The cross rate is the implicit rate of exchange between two currencies (mainly they are not Country U) that are quoted in some other third currency (generally the US$).
b)
To find: The preference of Person X SF100 or £100
Introduction:
The cross rate is the implicit rate of exchange between two currencies (mainly they are not Country U) that are quoted in some other third currency (generally the US$).
c)
To find: The cross rates for Country S’s franc in term of Country U’s pounds and the cross rates for the Country U’s pounds in term of Country S’s franc.
Introduction:
The cross rate is the implicit rate of exchange between two currencies (mainly they are not Country U) that are quoted in some other third currency (generally the US$).
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