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Suppose the Japanese yen exchange rate is 120 = $1 and the British pound exchange rate is 1 = $1.45. Suppose the cross-rate is 140.1
Suppose the Japanese yen exchange rate is 120 = $1 and the British pound exchange rate is 1 = $1.45. Suppose the cross-rate is 140.1 = 1. If there is, what would be the profit of the mispricing?
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