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The following spot foreign exchange rates are quoted on the New York foreign exchange market: Russian Ruble - US 5 = 28.00 and South Korean

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The following spot foreign exchange rates are quoted on the New York foreign exchange market: Russian Ruble - US 5 = 28.00 and South Korean Won - US 5 = 1,000.00. (a) Use this information to find the implied cross exchange rate of South Korean Won per unit of Russian Rubles. (b) Suppose the foreign exchange market in Moscow quotes the South Korean Won - Russian Rubles as 35.00. What is the percentage deviation of this implied cross rate from the actual market cross rate? (c) Explain why these the two rates could be different

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