Question
Suppose the Japanese yen exchange rate is 76 = $1, and the British pound exchange rate is 1 = $1.60 b. Suppose the cross-rate is
| Suppose the Japanese yen exchange rate is 76 = $1, and the British pound exchange rate is 1 = $1.60 |
| b. | Suppose the cross-rate is 125 = 1. What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) |
| Arbitrage profit | $ |
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Finance A Quantitative Introduction Volume 2
Authors: Piotr Staszkiewicz, Lucia Staszkiewicz
1st Edition
0128027975, 978-0128027974
