Calculate the possible rate for buying GBP United kingdom Do

Calculate the possible rate for buying GBP (United kingdom Dollar) in exchange for selling JPY as well as the possible rate for selling GBP in exchange for buying JPY. Assume that the exchange rates (Bid - Offered rate) are quoted as follows: USD1 = JPY 118.10-20 , GBP1 = USD 1.6520-25

Solution

USD1 = JPY 118.10-20

GBP1 = USD 1.6520-25

Bid JPY/GBP = Bid JPY/USD x Bid USD/GBP

= 118.10 x 1.6520

= 195.1012

Ask JPY/GBP = Ask JPY/USD x AskUSD/GBP

= 118.20 x 1.6525

= 195.3255

Hence, buying rate of GBP in exchange for selling JPY = 195.3255

Hence, selling rate of GBP in exchange for buying JPY = 195.1012