A Currency Trader Observes the Following Quotes in the Spot

question 11

Multiple Choice

A currency trader observes the following quotes in the spot market:
1 U) S. dollar = 10.875 Mexican pesos
1 British pound = 6.205 Danish krone
1 British pound = 1.65 U.S. dollars
Given this information, how many Mexican pesos can be purchased for 1 Danish krone?

• A) 2.7490
• B) 2.8195
• C) 2.8918
• D) 2.9641
• E) 3.0382

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Definitions:

Goalie

A player in sports, particularly in hockey or soccer, responsible for protecting the goal from being scored by the opposing team.

Shutout

In finance, it typically means being prevented from participating in an opportunity, often due to timing or fulfillment conditions not being met.

Monthly Base Salary

The fixed amount of money paid to an employee every month, excluding bonuses, benefits, or overtime.

Commission Rate

The percentage or fixed payment associated with a transaction, often used in sales to determine the amount paid to the salesperson or agent.