three way spot rate

This topic has 6 replies, 3 voices, and was last updated 8 years ago by John Moffat.

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September 5, 2017 at 5:09 pm #405707
dmittal
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Hi
I noticed on the mock exam , there is a 3 way spot calculation, I have not covered this in the study notes

Will be be expected to answer this type of ca;culation

Thanks
September 6, 2017 at 9:27 am #405921
John Moffat
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Please tell me which question you are referring to.
September 6, 2017 at 9:51 am #405930
dmittal
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Question 13 of 30

Euro / £ 1.44
Yen / £ 232.11
USD / £ 1.71

Find Euro to $
September 6, 2017 at 10:30 am #405966
John Moffat
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1 GBP buys 1.44 Euros

1 GBP also buys 1.71 $’s

Therefore 1.44 Euros = 1.71 $’s

Therefore 1 $ = 1.44/1.71 = 0.84 euros
September 6, 2017 at 7:08 pm #406187
dmittal
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Thank you
September 7, 2017 at 4:02 am #406258
khuramch
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Hello Sir

I also confuse in this question..

Well thanks for Calculation..

i need to know what is mean by 3 way Spot calculation..Also Why we use them

Thanks
September 7, 2017 at 7:37 am #406299
John Moffat
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dmittal: You are welcome 🙂

khuamch: “3 way spot calculation” is not a standard term. If you know the exchange rate with each of two currencies then you can calculate the exchange rate between those two currencies. The example above is a perfect illustration of what I mean.
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