If the Canadian dollar to US dollar exchange rate is 124 and

If the Canadian dollar to U.S. dollar exchange rate is 1.24

and the British pound to U.S. dollar exchange rate is 0.63, what must be the Canadian dollar to British pound exchange rate?

The spot exchange rate is ? Canadian dollars per pound. (Round your response to two decimal places.)

Solution

Spot rate = 1.24 ´ (1/0.63)

               = 1.24 (1.587)

                      = 1.97 Canadian dollars/pound