Suppose that the pound is pegged to gold at $20$ per ounce and the dollar is pegged to gold at $$35$ per ounce. This implies an exchange rate of $ per pound. If the current market exchange rate is $$1\mathrm{.}80$ per pound, there is an arbitrage opportunity by buying gold using $($currency$)$; then selling gold simultaneously using $($currency$).$ Finally, exchange the currency in the current market.

$1\mathrm{.}75$; GBP; USD

$1\mathrm{.}75$; USD; GBP

$0\mathrm{.}57$; GBP; USD

$0\mathrm{.}57$; USD; GBP