If USD/JPY is quoted to you as 98.10-15 and USD/CHF as 0.9294-99, what is the rate at which you can buy CHF against JPY?
A) 105.50
B) 105.61
C) 10555
D) 0.009474

Question

Quizplus · Accepted Answer

To find the rate at which you can buy CHF against JPY, we need to use the cross rate formula:

Cross Rate = (USD/JPY)/(USD/CHF)

Cross Rate = (98.10/100)/(0.9294/1)

Cross Rate = 1.054

Since we want to know the rate at which we can buy CHF against JPY, we need to invert the cross rate:

1/Cross Rate = 1/1.054

1/Cross Rate = 0.948

Therefore, we can buy CHF against JPY at a rate of 0.948 JPY/CHF, or approximately 105.61 CHF/JPY.

The correct answer is B.

If USD/JPY Is Quoted to You as 98