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Suppose the Japanese yen exchange rate is 119 = $1 and the British pound exchange rate is 1 = $1.39. a. What is the cross-rate
Suppose the Japanese yen exchange rate is \119 = $1 and the British pound exchange rate is 1 = $1.39. 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 W168 = 1. What is the arbitrage profit per dollar? (Do not round intermediate calculations and round your answer to decimal places, e.g., 32.1616.) Cross-rate b. Arbita Arbitrage profit per dollar
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