Using the following quotations: USD / EGP 46.8680 / 46.9280 USD / JMD 151.1230 / 154.4150 (a) What is the cross rate between the Egyptian Pound and the Jamaican Dollar. Present the quotation in direct form as the dealer's buy and sell prices for the Egyptian Pound (4 decimal places). Show all workings.  (b) What is the size of the spread of the cross rate as a percentage of the ask price?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 1BIC
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Using the following quotations:

USD / EGP 46.8680 / 46.9280

USD / JMD 151.1230 / 154.4150

(a) What is the cross rate between the Egyptian Pound and the Jamaican Dollar. Present the quotation in direct form as the dealer's buy and sell prices for the Egyptian Pound (4 decimal places). Show all workings. 

(b) What is the size of the spread of the cross rate as a percentage of the ask price?

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