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What is the euro/pound cross rate? Suppose the quoted cross rate is 1 euro/pound, assuming you have $100 to invest show that there is an

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What is the euro/pound cross rate? Suppose the quoted cross rate is 1 euro/pound, assuming you have $100 to invest show that there is an arbitrage opportunity that provides a riskless profit and the amount of profit. (5 points) The spot exchange rate is 74.074 Indian rupees/US dollar. Interest rates in the US are 1.5% per year. Interest rates in India are 3.8% per year. Using the interest rate parity condition, predict the exchange rate in 4 years. (2 points) County/Currency in US per US Argentina/peso Brazil/real Canada dollar Euro area/euro India/rupee Mexico/peso UK/pound .0125 .1866 .7639 1.190 .0135 .0492 1.318 80.079 5.359 1.309 0.840 74.074 20.325 0.759

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