Question

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?

Answer 1

Answer:

¥135.79/€

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.