Suppose the japanese yen exchange rate is 84 1 and the
Suppose the Japanese yen exchange rate is ¥84 = $1, and the British pound exchange rate is £1 = $1.52.
a. What is the cross-rate in terms of yen per pound? ___
b. Suppose the cross-rate is ¥132 = £1. What is the arbitrage profit per dollar used?___
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