2. Suppose the central rates within the ERM for the French franc (FF) and Deutschmark (DM) are FF 6.90403:ECU 1 and DM 2.05853:ECU 1, respectively.

(a) What is the cross-exchange rate between the French franc and the Deutschmark?

(b) Under the former 2.25% margin on either side of the central rate, what were the approximate upper and lower intervention limits for France and Germany?

(c) Under the new 15% margin on either side of the central rate, what are the current approximate upper and lower intervention limits for France and Germany?