Suppose that one year ago the spot rate for the British pound was $1.04 per pound,...

 

Transcribed Image Text:

Suppose that one year ago the spot rate for the British pound was $1.04 per pound, while the spot rate for the peso was $0.65 per peso. The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spot rate for the peso was $1 per peso. Now, the cross rate of the British pound is £1 = pound. pesos. This represents a percent change in the cross rate of the British Suppose that one year ago the spot rate for the British pound was $1.04 per pound, while the spot rate for the peso was $0.65 per peso. The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spot rate for the peso was $1 per peso. Now, the cross rate of the British pound is £1 = pound. pesos. This represents a percent change in the cross rate of the British

Answer rating: 100% (QA)

To find the cross rate for the British pound one year ago you can use the given exchange rates ... View the full answer