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Suppose the Japanese yen exchange rate is 116 = $1, and the British pound exchange rate is 1 = $1.27. a. What is the cross-rate

Suppose the Japanese yen exchange rate is 116 = $1, and the British pound exchange rate is 1 = $1.27.

a.

What is the cross-rate in terms of yen per pound? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.

Suppose the cross-rate is 156 = 1. What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

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