Answer:
To calculate the implied ZAR/HKD exchange rate, divide the given CNY/ZAR rate by the CNY/HKD rate. The closest matching rate to the calculated 1.0864 is option b) 1.0860.
Step-by-step explanation:
To find the implied exchange rate ZAR/HKD from the provided quotes, we need to use both CNY/ZAR and CNY/HKD quotes and cross-multiply to eliminate the CNY (Chinese Yuan) component, which is common to both pairs. This method is often referred to as the cross-rate calculation.
ZAR/HKD Exchange Rate Calculation:
Take the CNY/ZAR quote: CNY/ZAR = 0.9149
Take the CNY/HKD quote: CNY/HKD = 0.8422
Divide the first quote by the second to get ZAR/HKD ratio: ZAR/HKD = 0.9149 / 0.8422
Perform the division to find the ZAR/HKD exchange rate.
By doing the math, we find that ZAR/HKD is approximately equal to 1.0864. Therefore, the closest answer to the implied exchange rate between ZAR and HKD provided in the options is b) 1.0860.