Final answer:
To calculate the cross rate between the Mexican peso (ps) and the euro (), divide the Mexican peso spot rate by the Euro spot rate.
Step-by-step explanation:
To calculate the cross rate between the Mexican peso (ps) and the euro (), we need to use the spot rates given. The spot rate between the Mexican peso and the U.S. dollar is 0.5, and the spot rate between the euro and the U.S. dollar is 1.5. We can use these rates to find the cross rate between the Mexican peso and the euro.
Since we want to convert from Mexican peso to euro, we need to divide the spot rate of the Mexican peso to U.S. dollar by the spot rate of the euro to U.S. dollar. So, the cross rate between the Mexican peso and the euro is:
Cross rate = Mexican peso spot rate / Euro spot rate = 0.5 / 1.5 = 0.333