Calculate the cross-rate in terms of yen per pound

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Reference no: EM132014115

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

a. What is the cross-rate in terms of yen per pound? (Round your answer to 2 decimal places, e.g., 32.16.)

Cross-rate ¥/£

b. Suppose the cross-rate is ¥125 = £1. What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

Arbitrage profit $

Reference no: EM132014115

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