A research report produced by a dealer includes the following exhibit:

	Spot Rate	Expected Spot Rate in One Year
YEN/GBP	1.2317	1.2089
EUR/YEN	0.5367	0.5355
YEN/CHF	1.4267	1.4036

1. Calculate the spot GBP/EUR cross-rate
2. Calculate the spot CHF/EUR cross-rate
3. By how much is the GBP expected to appreciate or depreciate against the YEN over the next year?
4. By how much is the YEN expected to appreciate or depreciate against the CHF over the next year?
5. Lists the three currencies from strongest to weakest over the next year?

Answer rating: 100% (QA)

To find the spot GBPEUR crossrate you can use the formula GBPEUR GBPYEN EURYEN Given GBPYEN 12317 EU... View the full answer