Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of...
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Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. This implied an exchange rate then of $4.8665/£. Today, an ounce of gold cost $1,666.20 in U.S. dollars and £1472.35 in British pounds. According to financial markets, the current exchange rate is $1.1225/E. What is the current exchange rate of dollars per pound implied by the current gold prices? (Omit currency signs and answer to four decimal places, answer is in the format of S/E) Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4.2474 in British pounds. This implied an exchange rate then of $4.8665/£. Today, an ounce of gold cost $1,666.20 in U.S. dollars and £1472.35 in British pounds. According to financial markets, the current exchange rate is $1.1225/E. What is the current exchange rate of dollars per pound implied by the current gold prices? (Omit currency signs and answer to four decimal places, answer is in the format of S/E)
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Related Book For
Multinational Business Finance
ISBN: 978-0132743464
13th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
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