Texts: TASK # 2 10 Marks Ganado Corporation recently received a payment for one of the consignments it exported to Europe. It has 2,000 Euros (€ or EUR) with it. Wanting to exchange all of these for Russian rubles (R or RUB) since it will be importing a new machine from a merchant in Russia, it obtains the following quotes: Spot rate USD=1.00 EUR (or $/€) 1.1280 Spot rate RUB=1.00 USD (or R/$) 62.40 a. What is the Russian ruble to euro cross rate? b. How many Russian rubles will you obtain for your Euros?
Added by Amy S.
Step 1
To convert the spot rate USD/EUR to EUR/USD, we need to take the reciprocal of the given rate. Reciprocal of 1.1280 is 1/1.1280 = 0.8865. Show more…
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