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2) Suppose that the pound is pegged to gold at 20 per ounce and the dollar is pegged to gold at $35 per ounce. This

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2) Suppose that the pound is pegged to gold at 20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exchange rate of S1.75 per pound If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation? (Assume that you have $350 available for investment.) (10 points)

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