Question

At current exchange rates it takes 0.1475 Canadian dollars to buy Chinese yuan (CNY), and 0.6052...

At current exchange rates it takes 0.1475 Canadian dollars to buy Chinese yuan (CNY), and 0.6052 Canadian dollars to buy one Brazilian real (BRL). What must the yuan/real exchange rate be in order to eliminate arbitrage opportunities?

1 CNY = 0.1475 Canadian dollars, it is expressed as : CAD/CNY = 0.1475

1 BRL = 0.6052 Canadian dollars, it is expressed as : CAD/BRL = 0.6052

yuan/real exchange rate = 1/0.1475 X 0.6052 = 4.1031 CNY/ BRL

ANSWER : 4.1031 CNY/ BRL (Thumbs up please)

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