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    Question

    Calculate the direct exchange rate between INR and HKD

    from the following information Spot INR/GBP = 100.82 Spot HKD/GBP = 10.71 Forward Rate INR/GBP = 106.82 Forward Rate HKD/GBP = 11.71
    A 8.61 Correct Answer Incorrect Answer
    B 9.12 Correct Answer Incorrect Answer
    C 9.41 Correct Answer Incorrect Answer
    D 9.97 Correct Answer Incorrect Answer
    E 0.11 Correct Answer Incorrect Answer

    Solution

    Since  the  direct  quote  for  HKD and INR is  not  available  it  will  be  calculated  by  cross exchange  rate  as follows: INR/HKD = INR/GBP x GBP/HKD = 100.82 /10.71 = 9.41

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