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Suppose it is January 1980 and the USD/Deutsche Mark (DM) exchange rate is DM1 -0.89 and the DM/French Franc (FF) exchange rate is FF1 -

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Suppose it is January 1980 and the USD/Deutsche Mark (DM) exchange rate is DM1 -0.89 and the DM/French Franc (FF) exchange rate is FF1 - 0.91 Assuming that no arbitrage opportunities exist, which of the following is closest to the FF/USD exchange rate? O a 0.8099 French francs per USD O b. 0.9780 French francs per USD Oc 1.2347 French francs per USD Od 1.0225 French francs per USD e 1.0989 French francs per USD

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