Suppose the japanese yen exchange rate is yen8647 1 and
Suppose the Japanese yen exchange rate is ¥86.47 = $1, and the British pound exchange rate is £1 = $1.65.
1. What is the cross-rate in terms of yen per pound?
2. Suppose the cross-rate is ¥145 = £1. What is the arbitrage profit per dollar?
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