Question: Do the following problems. You must show your work. a) You observe the following exchange rates in the market. i) $1 = 0.85 euros and

Do the following problems. You must show your work.

a) You observe the following exchange rates in the market.

i) $1 = 0.85 euros and 1 krona = $ 0.13. Find the cross exchange rate between euro and krona, that is, how many euros do you receive for every krona exchanged?

ii) 1 British pound (BP) = $1.12 and 1 euro = $1.04. Find the cross exchange rate between BP and euro, that is, how many euros do you receive for every BP exchanged?

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