Cross currency rate?

CA Final 680 views 1 replies

Can anyone explain me this question and which is the best way to calculate cross currency rates:

q.1) Given that:
1$= Rs.44.04/44.08
1 AUD = $18.05/18.08
1 AUD= GBP 0.4119/0.4127
1 FF = GBP 0.0996/0.0999
Find the direct quote of French Francs in India.

Thanks,

Skype: ashokthedon12

Email: ca.ashoksharma1 @ gmail.com

 

 

Replies (1)

It can be calculated in this way:

Rs/FF = Rs/$ * $/AUD * AUD/GBP * GBP/FF.

 

Firstly we should find the direct quote and indirect quote of all the given currencies rates and after that select the appropriate quote and solve this for for both buy and ask rate.

 

So you will get the direct quote for french francs in Rs.

Dont know whether its rite or wrong since am also a studnet like you.

 

Regards

Arun Krishnamoorthy

 

 


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