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What is the cross-exchange rate between the franc and mark

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Reference no: EM133019257

Suppose the central rates within the ERM for the French franc and DM are FF 6.90403:ECU 1 and DM 2.05853:ECU 1, respectively.

a. What is the cross-exchange rate between the franc and the mark?

b. Under the original 2.25% margin on either side of the central rate, what were the approximate upper and lower intervention limits for France and Germany?

c. Under the revised 15% margin on either side of the central rate, what are the current approximate upper and lower intervention limits for France and Germany?

Reference no: EM133019257

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