A Currency Trader Observes the Following Quotes in the Spot

question 87

Multiple Choice

A currency trader observes the following quotes in the spot market: $$\begin{array} { l l l } 1 \text { U.S. dollar } = & 10.875 & \text { Mexican pesos } \\1 \text { British pound } = & 7.500 & \text { Danish krone } \\1 \text { British pound } = & 1.65 & \text { U.S. dollars }\end{array}$$
Given this information,how many Mexican pesos can be purchased for 1 Danish krone?

• A) 2.3446
• B) 2.0097
• C) 2.9188
• D) 2.0815
• E) 2.3925

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Definitions:

Concentration Ratios

Measures that indicate the degree of concentration in an industry, often used to assess competition levels.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the industry.

Competitive

Relating to or characterized by competition; having the ability or resources to compete successfully with others.

Imperfectly Competitive

A market structure characterized by few sellers, differentiated products, and barriers to entry, which does not meet the criteria of perfect competition.