Question

CROSS RATE A currency trader observes that in the spot exchange market, 1 U.S. dollar can be exchanged for 3.6 Israeli shekels or for 111 Japanese yen. What is the cross-exchange rate between the yen and the shekel; that is, how many yen would you receive for every shekel exchanged

Answer 1

Answer: 30.83

Step-by-step explanation:

To get the crossover rate for two currencies given, we simply have to divide the spot rate for the two currencies that we are given.

The number of yen that one would receive for every shekel exchanged would be calculated as:

Yen/Shekel = 111Yen / 3.6 Shekel

= 30.83

This means that for every shekel that's been exchanged, one would get 30.83 yen