Suppose the Japanese yen exchange rate is 80=$1, and the British pound exchange rate is...
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Suppose the Japanese yen exchange rate is 80=$1, and the British pound exchange rate is 1=$1.64. a. What is the cross-rate in terms of yen per pound? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16 . b. Suppose the cross-rate is 136=1. What is the arbitrage profit per dollar used? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616
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