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Cross Rates in Foreign Exch Risk Management

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(Querist)
22 October 2008 Sir, I am unable to understand the way cross currency rates is calculated:

For E.g.,

Mumbai Market- Rs./$ Rs.34.05 - Rs.34.15
London Market- $/Pound $1.7250 - $1.7260
Italian Lira/Pound Lira 3.9575 - 3.9590

A customer has to buy Lira from Bank, hence what will be the relavant rate of Rs./ Lira?

Please advice?
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Ankit Dangayach

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Ankit Dangayach (Expert)
26 October 2008 Effective rate to buy one lira from bank is Rs 14.8939 or Rs 14.8950(say)

It is calculated as under
34.15*1.726/3.9575

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