CFA CFA Level 1 Need help with Cross Currency Question

Derivatives

Need help with Cross Currency Question

Topic Resolution: Resolved
  • This topic has 4 replies, 4 voices, and was last updated Mar-232:33 am by IMFM.
  • Author
    Posts
    • Avatar of KajalDigheKajalDighe
      Participant
        • CFA Level 1
        Up
        4
        Accepted answer
        ::

        We need to find how much NZD can 1 SGD buy  i.e NZD/SGD

        NZD/SGD = USD /SGD * NZD/USD

        = 1.2600 * 0.7670

        = 0.96642

        1SGD can buy 0.96642 NZD, he got 7500SGD which could buy 7248 NZD ( 7500* 0.96642)

        Zee Tan voted upBobatka voted up
        • Avatar of jinkaijinkai
          Participant
            • CFA Level 1
            Up
            2
            ::

            Hi, I am new here so forgive me for my beginner level question but I am under the impression that how much NZD can 1 SGD buy be SGD/NZD i.e. 1SGD = ?NZD, can someone please correct me on this?

            e.g. EUR/USD refers to how much USD can 1 EUR buy?

             

        • Avatar of IMFMIMFM
          Participant
            • CFA Level 1
            Up
            3
            ::

            Thank you, KajalDighe!

            KajalDighe voted upBobatka voted up
        Viewing 1 reply thread
        • You must be logged in to reply to this topic.