Suppose the Japanese yen exchange rate is ¥114 = $1,and the United Kingdom pound exchange rate is £1 = $1.83.Also suppose the cross-rate is ¥191 = £1.What is the arbitrage profit per one U.S.dollar?
A) $0.0743
B) $0.0846
C) $0.0857
D) $0.0923
E) $0.0948
Correct Answer:
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