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How do I approach this question? Suppose it is January 1980 and the USD/ITL (Italian Lira) exchange rate is TL1 = 0.95 and the ITL/FF

How do I approach this question?

Suppose it is January 1980 and the USD/ITL (Italian Lira) exchange rate is TL1 = 0.95 and the ITL/FF (French Franc) exchange rate is FF1 0.93 Assuming that no arbitrage opportunities exist, which of the following is closest to the FF/USD exchange rate? Select one: a. 1.1319 French francs per USD b. 0.8835 French francs per USD c. 0.9789 French francs per USD d. 1.0215 French francs per USD O e. 1.0753 French francs per USD

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