Suppose the Japanese yen exchange rate is 75 Yen = $1 and the British pound exchange rate

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Suppose the Japanese yen exchange rate is 75 Yen = $1 and the British pound exchange rate is £1 = $1.60.

What is the cross rate in yen per pound? (Round your answer to 2 decimal places, for example 32.16.)

Currency ¥/£

Suppose the diagonal ratio is ¥125 = £1. What is arbitrage profit per dollar used? (Do not round up intermediate calculations and round your answer to 4 decimal places, eg 32.1616.)

Arbitrage profit $

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Posted Date: Jun 26, 2023 04:31 AM

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Suppose the Japanese yen exchange rate is 75 Yen = $1 and the British pound exchange rate

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a To find the cross rate in yen per pound we can calculate the exchange rate by dividing t... View the full answer

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