A small presentation about the foreign exchange rates. focusing mainly on cross exchange rate. one example of cross rate also included in this ppt.

1. Submitted By
Shamil Aboobacker v.p
191127

2.  A foreign exchange rate is the price of the
domestic currency stated in terms of another
currency.
 An exchange rate is how much it costs to
exchange one currency for another.
 Types of Rates
 Spot rate
 Forward Rate
 Cross Rate

3.  The cross rate refers to the exchange
rate between two currencies, each of which has
an exchange rate quote against a
common currency. such as the exchange
rate between the euro and the yuan expressed in
USDollar.
 Points to note
 A cross rate is technically any rate between
two currencies that are not the domestic
currency in the country where the quote is
published.
 In practice, a cross rate is usually a
currency pair that doesn't involve the U.S.
dollar.

4.  Firstly, take the EUR/USD and the GBP/USD
rates. But you can see that the exchange
rates for these two currency pairs show the
USD as the quote currency.
 Therefore, one of these currencies need to
be inversed.
 We will inverse the GBP/USD currency rate.
The current GBP/USD rate is 1.24.
 So, the inverse of GBP/USD, which is
USD/GBP is 1/1.24 = 0.80645

5.  Thus, we now have EUR/USD which is 1.08
and USD/GBP which is 0.80645
 Now you simply multiply both the rates.
EUR/USD x USD/GBP = 1.08 x 0.80645 =
0.87097 (rounded).