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Suppose that the British pound is pegged to gold at 6 per ounce and one ounce of gold is worth France Franc of 12 (FF12).

Suppose that the British pound is pegged to gold at 6 per ounce and one ounce of gold is worth France Franc of 12 (FF12). The exchange rate is FF1.8/ and you have FF11, 000. How much profit can you make? (Assume zero shipping costs)

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