Using the EUR/USD and USD/JPY rates provided, select the correct EUR/JPY cross rate: EUR/USD: 1.1274 USD/JPY: 112.65 a. 127.0016 b. 127.00 c. 0.0100 d. 99.92
Question
Using the EUR/USD and USD/JPY rates provided, select the correct EUR/JPY cross rate:
EUR/USD: 1.1274
USD/JPY: 112.65
a. 127.0016
b. 127.00
c. 0.0100
d. 99.92
Solution
To calculate the EUR/JPY cross rate, you need to multiply the EUR/USD rate by the USD/JPY rate.
Here's how you do it:
- Take the EUR/USD rate which is 1.1274.
- Multiply it by the USD/JPY rate which is 112.65.
- The calculation is 1.1274 * 112.65 = 127.00161.
So, the correct answer is:
a. 127.0016
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