5. Deutsche Bank quotes bid–ask rates of $1.3005/€ - $1.3007/€ and ¥104.30 - 104.40/$. What would be Deutsche Bank’s direct asking price of yen per euro?

Question

asked Sep 1, 2021 82.5k views

1 Answer

Shivanshu Patel · Answer 1 · 2021-09-08T02:08:58+0000

Answer:

¥135.79/€

Step-by-step explanation:

The computation of the direct asking price of yen per euro is shown below:

Direct asking price = Bid-ask rate of Euro × Bid-ask rate of Yen

= $1.3007/€ × 104.40/$

= ¥135.79/€

We simply multiplied the bid-ask rate of Euro and the bid-ask rate of yen so that the approximate asking price could come.