A currency trader observes the following quotes in the spot market: 1 U. S. dollar = 122 Japanese yen 1 British pound = 2.25 Swiss francs 1 British pound = 1.63 U. S. dollars Given this information, how many yen can be purchased for 1 Swiss franc? 89.47 85.05 91.70 88.38

88.38

Explanation:

Given;

1 U. S. dollar = 122 Japanese yen

1 British pound = 2.25 Swiss francs

1 British pound = 1.63 U. S. dollars

Therefore,

2.25 Swiss francs = 1.63 U. S. dollars

1 US. dollar = 2.25/1.63 Swiss francs

1 US dollar = 1.38 Swiss francs

since

1 U. S. dollar = 122 Japanese yen then,

1.38 Swiss francs = 122 Japanese yen

1 Swiss francs = 122/1.38 Japanese yen

1 Swiss francs = 88.38 Japanese yen

1 Swiss franc can be used to purchase 88.38 Japanese yen.