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You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.6000/ and the dollar-pound exchange rate is quoted at
You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.6000/ and the dollar-pound exchange rate is quoted at $2.0000/1. You are also quoted a cross rate of 0.8333/, but you are convinced that the cross rate provided is not correct. a. Calculate the correct / cross rate. Show your calculations in the space provided below. For example: 5084/ 5.5231 = .092057 b. Compare the correct cross rate that you calculated with the provided cross rate. Is the currency value of the pound overvalued or undervalued in the provided cross rate
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