Question: Problem 3 1 - 5 Cross - Rates and Arbitrage Suppose the Japanese yen exchange rate is ( 7 5 = $ 1

Problem 31-5 Cross-Rates and Arbitrage Suppose the Japanese yen exchange rate is \(75=\$ 1\), and the British pound exchange rate is \(1=\$ 1.54\). a. What is the cross-rate in terms of yen per pound? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.) b. Suppose the cross-rate is \(120=1\). What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g.,32.1616.) Answer is complete but not entirely correct.
Problem 3 1 - 5 Cross - Rates and Arbitrage

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