Given the following quotes, what must the Euro indirect quote (USD/EUR) be in order to prevent arbitrage opportunities? CAD/USD = 1.3045 CAD/EUR = 1.58588 A) 0.1774. B) 1.2157. C) 0.4834. D) 0.8226. Your answer: D was incorrect. The correct answer was B) 1.2157. Am I getting this wrong?
yes cad/eur =1.58588 usd/cad = 1/1.3045=0.766 multiply the two B is correct
1.58588 (CAD/EUR) divided by 1.3045 (CAD/USD) = 1.2157 (USD/EUR) Anish
My Bad. had it all mixed up. Thanx.