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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