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c) Suppose the Japanese yen exchange rate is 119 = $1, and the British pound exchange rate is 1 = $1.69. i) What is the

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c) Suppose the Japanese yen exchange rate is 119 = $1, and the British pound exchange rate is 1 = $1.69. i) What is the cross-rate in terms of yen per pound? ii.) Suppose the cross-rate is 210 = 1. Is there an arbitrage opportunity here? If there is, explain how to take advantage of the mispricing and the potential arbitrage profit. (5marks)

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