Accounting help
Accounting help
a. Suppose the Japanese yen exchange rate is 80 = $1, and the British pound exchange rate is 1 = $1.58.
What is the cross-rate in terms of yen per pound?
b. Suppose the cross-rate is 129 = 1. What is the arbitrage profit per dollar used?
I got 126.40 for the cross rate in terms of yen per pound.
Can anyone explain how to find the arbitrage profit per dollar used? Thanks!
Posted Answers:
a. 126.40
b. $1.5184