Question 1: Suppose the price of gold is 155 marks.
A. If the dollar price of gold is $100 per ounce, what should you expect the dollar price of a mark to be?
B. If it actually only costs $0.60 to purchase one mark, how could one make arbitrage profits?
Question 2: Fill in the missing exchange rates in the following table:
|
US dollar
|
British pound
|
German mark
|
Yen
|
|
US dollar
|
$1
|
$1.50
|
$0.50
|
$0.01
|
|
British pound
|
£0.67
|
|
|
|
|
German mark
|
DM2.0
|
|
|
|
|
Japanese yen
|
¥100
|
|
|
|