Advantage of the mispricing


Suppose the japanese yen exchange rate is Y112 = $1, and the british pound exchange rate is E1 = $1.93. what is the cross-ratein terms of yen per pound? suppose the cross-rate is Y209 = E1. is there an arbitrage opportunity here? if there is, explain how to take advantage of the mispricing?

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Finance Basics: Advantage of the mispricing
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