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NEW QUESTION: 1
An analyst is reviewing the following quotes from around the world:
In New York: $1 = Y(JPY)120. In Tokyo: AU$1 (Australian Dollar) = Y(JPY)60. In Sidney: $1 = AU$2.3.
What is the true cross rate between the AU$ and the Y(JPY)?
A. Y(JPY)57.6543 per AU$.
B. AU$0.01917 per Y(JPY).
C. AU$0.03245 per Y(JPY).
Answer: B
Explanation:
Cross rate = (Y(JPY)120/$1) / (AU$2.3/$1) = 52.174 Yen/AU$. Another way to express this quote is 1/(52.174 Y(JPY)/AU$) or AU$0.01917/Y(JPY).

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