1- $/yen = .009, yen/pound = 120, $/pound = 1.15   a. Is there alignment of exchange rates?   b. Will arbitrage take place?   c. At what direction the arbitrage will take place?   d. For an investor investing $1000000, what will be the gain?      Only typed answer

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter6: An Introduction To The Foreign Exchange Market And The Balance Of Payments
Section: Chapter Questions
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1- $/yen = .009, yen/pound = 120, $/pound = 1.15

 

a. Is there alignment of exchange rates?

 

b. Will arbitrage take place?

 

c. At what direction the arbitrage will take place?

 

d. For an investor investing $1000000, what will be the gain? 

 

 

Only typed answer 

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