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3. Here are two exchange rates: $1.39/ $1.177 a) What should the cross-rate be? b) You have $1,000. If the cross-rate is 1.21/, how can

3. Here are two exchange rates: $1.39/ $1.177 a) What should the cross-rate be? b) You have $1,000. If the cross-rate is 1.21/, how can you earn an arbitrage profit? Find the profit in dollars

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