Assume the following market rates:0

Finance Nov 13, 2020

Assume the following market rates:0.18 5/Brazilian real, 9.50H/S, and 1.65 DH/Brazilian real What is the implied exchange rate of DH/Brazilian real? (Select 1x pts) 0165 2.40 20 1.71 None of the above

Expert Solution

Answer : Correct Option is 1.71

Reason :

Implied Exchange rate

1 Brazilian = $0.18

1$ = Brazilian (1/0.18) .......(1)

1$ = 9.5 DH.........(2)

Equating 1 and 2

Brazilian (1 / 0.18) = 9.5 DH

1 Brazilian = DH (9.5 * 0.18)

= 1.71

Therefore Implied exchange rate between DH/Brazilian real is 1.71

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