Suppose the Japanese yen exchange rate is ¥110 = $1, and the British pound exchange rate is £1 = $1.55.
Required:
(a) What is the cross-rate in terms of yen per pound? (Do not include the yen sign (¥). Round your answer to 2 decimal places (e.g., 32.16).
(b) Suppose the cross-rate is ¥175 = £1. What is the arbitrage profit per dollar? (Do not include the dollar sign ($). Round your answer to 4 decimal places (e.g., 32.1616).)