Question: Suppose the Japanese yen exchange rate is 116=$1 and the British pound exchange rate is 1=$1.27. a. What is the cross-rate in terms of yen

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Suppose the Japanese yen exchange rate is 116=$1 and the British pound exchange rate is 1=$1.27. 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 156=1. What is the arbitrage profit per dollar? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 1616

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