CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

An analyst is reviewing the following quotes from around the world:

In New York: $1 = ¥120
In Tokyo: AU$1 (Australian Dollar) = ¥60
In Sidney: $1 = AU$2.3

What is the true cross rate between the AU$ and the ¥?
A. AU$0.03245 per ¥
B. AU$0.01917 per ¥
C. ¥57.6543 per AU$
Explanation: Cross rate = (¥120/$1) / (AU$2.3/$1) = 52.174 Yen/AU$

Another way to express this quote is 1/(52.174 ¥/AU$) or AU$0.01917/¥.

User Contributed Comments 1

User Comment
zdenka88 Or AU$2.3 / ¥120 = 0.01917
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