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1. Suppose the spot rate for Korean won is 1250 and the exchange rate for British pound is 1=$1.15. Whats the implied cross rate for

1. Suppose the spot rate for Korean won is 1250 and the exchange rate for British pound is 1=$1.15. Whats the implied cross rate for /? If the spot rate is 1400=1, is there an arbitrage opportunity? Explain in detail how you can make arbitrage profits? Whats the profit per dollar expressed in percentage?

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