Determine gbp is undervalued or overvalued

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Question 1: Given CAD1.0233/$, $1.5489/GBP, and CAD1.5720/GBP. Estimate the implied cross rate between CAD/GBP and determine GBP is undervalued or overvalued.

a. 1.5136; undervalued

b. 1.5136; overvalued

c. 1.5850; undervalued

d. 1.5850; overvalued

Reference no: EM132652286

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