If the cross exchange rate of two nondollar currencies implied by their individual spot rates with respect to the dollar is greater than the cross exchange rate quoted by a bank, locational arbitrage is possible. a) True b) False From the U.S. perspective, an example of a cross exchange rate is the exchange rate between a non-U.S. country and the United States. a) True b) False If the cross exchange rate of two nondollar currencies implied by their individual spot rates with respect to the dollar is greater than the cross exchange rate quoted by a bank, locational arbitrage is possible. a) True b) False Interest rate parity (IRP) states that the foreign currency's forward rate premium or discount is roughly equal to the interest rate differential between the United States and the foreign country. a) True b) False