Assignment:
Suppose the central rates within the ERM for the French franc and DM are FF 6.90403:ECU 1 and DM 2.05853:ECU 1, respectively.
a. What is the cross-exchange rate between the franc and the mark?
b. Under the former 2.25% margin on either side of the central rate, what were the approximate upper and lower intervention limits for France and Germany?
c. Under the new 15% margin on either side of the central rate, what are the current approximate upper and lower intervention limits for France and Germany?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.