review the charts below to calculate the price of the swiss franc in terms of the japanese yen

Voc Authors

2 min read

·

23-11-2024

24

0

Share

Deciphering Exchange Rates: Calculating the Swiss Franc (CHF) in Japanese Yen (JPY)

Understanding exchange rates is crucial in international finance. This article demonstrates how to calculate the price of the Swiss Franc (CHF) in terms of the Japanese Yen (JPY), given relevant exchange rate charts. Because I cannot directly access and interpret external charts, I will provide a general methodology using hypothetical data. You can apply this method to any charts you have available.

Understanding Exchange Rates:

An exchange rate shows the value of one currency in terms of another. For example, if the exchange rate is CHF 1.00 = JPY 110.00, it means one Swiss Franc can be exchanged for 110 Japanese Yen. These rates constantly fluctuate based on market forces.

Methodology:

To calculate the price of the Swiss Franc in Japanese Yen, you'll need at least one exchange rate chart showing the CHF/JPY exchange rate or charts showing CHF against a common currency (like USD or EUR) and JPY against the same common currency.

Scenario 1: Direct CHF/JPY Exchange Rate Chart

Let's assume your chart shows the following data point:

• CHF/JPY: 115.50

This directly tells us that 1 Swiss Franc is worth 115.50 Japanese Yen.

Scenario 2: Using a Third Currency (e.g., USD)

If you don't have a direct CHF/JPY chart, you might have charts for CHF/USD and JPY/USD. Let's assume these charts provide the following data:

• CHF/USD: 0.90 (1 CHF = 0.90 USD)
• JPY/USD: 130.00 (1 USD = 130.00 JPY)

To calculate CHF/JPY, we use a simple conversion:

1. Convert CHF to USD: 1 CHF * 0.90 USD/CHF = 0.90 USD
2. Convert USD to JPY: 0.90 USD * 130.00 JPY/USD = 117.00 JPY

Therefore, in this scenario, 1 Swiss Franc is worth 117.00 Japanese Yen.

Scenario 3: Using EUR as the intermediary Currency

Similar to the USD example, if you have data points for CHF/EUR and JPY/EUR, you can calculate CHF/JPY the same way, substituting EUR for USD in the calculation.

Important Considerations:

• Time Sensitivity: Exchange rates are dynamic. The rates shown on your charts are only valid at the specific time they were recorded.
• Bid-Ask Spread: Exchange rates are typically quoted with a bid (the price at which a bank will buy a currency) and an ask (the price at which a bank will sell a currency). Use the appropriate rate based on whether you're buying or selling Swiss Francs.
• Chart Accuracy: Ensure the charts you're using are from reliable and reputable sources.

Conclusion:

By using the appropriate exchange rate chart data and following the methods described above, you can accurately calculate the price of the Swiss Franc in terms of the Japanese Yen. Remember to always consider the time sensitivity of exchange rates and use data from credible sources.