What the implied cross rate of euro or pound is

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Problem 1: Assume the following quotes: USD1.5400/Pound, euro1.6000/Pound, and USD0.9700/euro. The implied cross rate of euro/Pound is ____, indicating Pound is___.

Select one:

a. 1.5876; overvalued

b. 0.6299; undervalued

c. 0.6299; undervalued

d. 1.5876; undervalued

Reference no: EM132652289

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