can anyone please help me confirm with the answer of the following currency ex problem?
Quote 0.008852 - 6 USD/yen, quote 0.02874 - 6 USD/Tawainese dollar(NT).
If i want to buy NT10 million, how much is the cost of yen?
The answer is 32453000 or 32490000? Thank you.
This is question 7 in I in Volume I of Schweser’s 2019 mock exams.
The correct answer is JPY 32,489,832 = 10,000,000 NTD / ((0.008852 USD/JPY) / (0.02876 USD/NTD))
USD/JPY: use bid quote because you’re selling JPY USD/NTD: use ask quote because you’re purchasing NTD