Anne Dietz lives in Singapore, but is making her first business trip to Sydney, Australia. Standing in Singapore’s new terminal #3 at Changi Airport, she looks at the foreign exchange quotes posted over the FX trader’s booth. She wishes to exchange 1,000 Singapore dollars (S$ or SGD) for Australian dollars (A$ or AUD). What Anne sees:

Spot rate: SGD1.34 = USD1.00

Spot rate: USD0.7640 = AUD1.00

a.  What is the Singapore dollar to Australian dollar cross rate?

b.  How many Australian dollars will Anne get for her Singapore dollars?

Transcribed Image Text:

Assumptions Singapore dollars to be exchanged Spot rate: SGD = USD1.00 Spot rate: USD AUD 1.00 Values SGD 1,000.00 1.3400 0.7640