1. The spot rate is Mexican peso (P$) and the euro is P$ 10.5799/€, and the euro spot rate (€) and the Indonesia rupia is (R ) is €0.4462/R. Exchange amount P$ 4,500 a) What is the P$/R cross rate, b) how many reals for the pesos?
2. Discuss how an OBS activity moves onto the balance sheet as an asset or liability and discuss the risks and benefits of OBS activities to a bank.