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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?

B- Suppose the cross-rate is 156 = l. Is there a triangle arbitrage opportunity? If yes, what is your arbitrage profit per U.S. dollar used?

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