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Suppose the Japanese yen exchange rate is 75.47 = $1, and the British pound exchange rate is 1 = $1.55. a. What is the cross-rate
Suppose the Japanese yen exchange rate is 75.47 = $1, and the British pound exchange rate is 1 = $1.55. a. What is the cross-rate in terms of yen per pound? (Do not include the yen sign (). Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32 16.) b. Suppose the cross-rate is 120 = 1. What is the arbitrage profit per dollar? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616. a. Cross-rate b. Arbitrage profit per dollar
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