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Suppose you observe the following exchange rates: €1 = 1.25; £1 =2.00. Calculate the euro-pound crossrate?

User Sterno
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Final answer:

The euro-pound crossrate can be calculated by dividing the euro-dollar exchange rate by the pound-dollar exchange rate.

Step-by-step explanation:

The euro-pound crossrate can be calculated using the given exchange rates for the euro-dollar and pound-dollar. To find the crossrate, you divide the euro-dollar exchange rate by the pound-dollar exchange rate. In this case, €1 equals 1.25 dollars and £1 equals 2.00 dollars. Therefore, the euro-pound crossrate is €1 divided by £1 which equals 0.625.

User Shane N
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