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Suppose the Japanese yen exchange rate is 79 = $1, and the British pound exchange rate is 1 = $1.63 a. What is the cross-rate
Suppose the Japanese yen exchange rate is 79 = $1, and the British pound exchange rate is 1 = $1.63 |
a. | What is the cross-rate in terms of yen per pound? (Round your answer to 2 decimal places, e.g., 32.16.) |
b. | Suppose the cross-rate is 135 = 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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