An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dollar. In New York: the British pound rate is $1.35, the euro rate is $0.98, the Canadian dollar rate is 1.34 Canadian dollar, and the Yen rate is 117 Yen.

In London: the British pound rate is $1.38, the euro rate is $0.95, the Canadian dollar rate is 1.31 Canadian dollar, and the Yen rate is 115 Yen.

What is the Canadian dollar/British pound cross rate in London?

	A.	1.808
	B.	1.809
	C.	0.5532
	D.	0.5528

An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dollar. In New York: the British pound rate is $1.35, the euro rate is $0.98, the Canadian dollar rate is 1.34 Canadian dollar, and the Yen rate is 117 Yen.

In London: the British pound rate is $1.38, the euro rate is $0.95, the Canadian dollar rate is 1.31 Canadian dollar, and the Yen rate is 115 Yen.

In London, the forward rate for the pound is $1.36. What should an American firm do with an asset in Britain?

	A.	lag the conversion to the dollar
	B.	lag the conversion to the pound
	C.	lead the conversion to the dollar
	D.	lead the conversion to the pound