Yen exchange rate and pound exchange rate

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Reference no: EM131179609

Suppose the Japanese yen exchange rate is ¥110 = $1, and the British pound exchange rate is £1 = $1.55.

Required:

(a) What is the cross-rate in terms of yen per pound? (Do not include the yen sign (¥). Round your answer to 2 decimal places (e.g., 32.16).

(b) Suppose the cross-rate is ¥175 = £1. What is the arbitrage profit per dollar? (Do not include the dollar sign ($). Round your answer to 4 decimal places (e.g., 32.1616).)

Reference no: EM131179609

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