A currency trader observes the following quotes in the spot market: Given this information, how many yen can be purchased for 1 Swiss franc?
A) 0.8505
B) 0.8723
C) 0.8947
D) 0.9170
E) 0.9400

Question

Quizplus · Accepted Answer

To determine how many yen can be purchased for 1 Swiss franc, we need to use the quote for USD/CHF and JPY/USD to calculate JPY/CHF. 
JPY/USD = 107.15 
USD/CHF = 0.8947 
To convert from USD/CHF to JPY/CHF, we multiply the two quotes: 
JPY/CHF = JPY/USD x USD/CHF 
JPY/CHF = 107.15 x 0.8947 
JPY/CHF = 95.813 
Therefore, we can purchase 95.813 yen for 1 Swiss franc. The closest answer to this value is C) 0.8947.

A Currency Trader Observes the Following Quotes in the Spot