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Suppose the Japanese yen exchange rate is 75 = $1, and the British pound exchange rate is 1 = $1.54. a. What is the cross-rate
| Suppose the Japanese yen exchange rate is 75 = $1, and the British pound exchange rate is 1 = $1.54. |
| a. | What is the cross-rate in terms of yen per pound? (Round your answer to 2 decimal places, e.g., 32.16.) |
| Cross-rate | / |
| b. | Suppose the cross-rate is 120 = 1. What is the arbitrage profit per dollar used? |
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