What is the cross-rate in terms of yen per pound

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Reference no: EM131178094

Suppose the Japanese yen exchange rate is ¥86.47 = $1, and the British pound exchange rate is £1 = $1.65.

1. What is the cross-rate in terms of yen per pound?

2. Suppose the cross-rate is ¥145 = £1. What is the arbitrage profit per dollar?

Reference no: EM131178094

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