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Determine the quotes for the cross rate given

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Reference no: EM132816059

Suppose a Franco-Dutch Airline Company in Paris receives the following indirect quotes in New York: €0.92 - 3 and £0.63 - 4.

Required:

i. Based on the above information, determine the quotes for the cross rate given.

ii. Franco-Dutch plans to invest €2,000,000. Should the company invest when the cross rate is quoted at £0.6783 - 0.6990.

Reference no: EM132816059

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