If the Japanese yen–U.S. dollar exchange rate is ¥104.30/$, and it takes 25.15 Thai bahts to purchase 1 dollar, what is the yen price of the baht?
What will be an ideal response?
To prevent triangular arbitrage, the direct quote of the yen price of the baht (¥/THB) must equal the yen price of the dollar times the dollar price of the baht (which is the reciprocal of the baht price of the dollar):
¥104.30/$ 1/(THB25.15/$) = ¥104.30/$ $0.03976/THB = ¥ 4.1471/THB
You might also like to view...
A contract that has been fully performed is an executory contract.
Answer the following statement true (T) or false (F)
When an advertiser pays a fixed amount (e.g. 70 cents) each time a web surfer clicks on the advertiser's ad and links to the advertiser's website, the process is called
A. advertising allowance. B. pay-per-click. C. pioneering advertising. D. copy thrust. E. pay-per-view.
In an at-fault divorce, neither party is considered to be at fault
Indicate whether the statement is true or false
Which of the following is NOT a major subaccount of the Balance of Payments?
A) the financial account B) the accounts payable C) the capital account D) the current account