Question

Given these two exchange rates, $1 = 12.268 Mexican pesos and $1 = €0.7624, compute the cross-rate between the Mexican peso and the euro. State this exchange rate in pesos and in euros. (Do not round intermediate calculations. Round your answers to 4 decimal places.) Cross-rate of 1 peso Cross-rate of 1 euro pesos

Answer 1

1). Cross-rate of euro/peso = [Euro/$] / [Pesos/$]

= 0.7624 / 12.268 = 0.0621

So, Cross-rate of 1 peso = 0.0621 euros

2). Cross-rate of peso/euro = [Pesos/$] / [Euro/$]

= 12.268 / 0.7624 = 16.0912

So, Cross-rate of 1 euro = 16.0912 pesos