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

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Q1- Suppose the Japanese yen exchange rate is ¥106 = $1 and the British pound exchange rate is £1 = $1.16. What is the cross-rate in terms of yen per pound?

Q2- Suppose the Japanese yen exchange rate is ¥113 = $1 and the British pound exchange rate is £1 = $1.53. Suppose the cross-rate is ¥144.9 = £1. If there is, what would be the profit of the mispricing?

Reference no: EM133056525

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