Suppose the Japanese yen exchange rate is ¥83 = $1, and the British pound exchange rate is £1 = $1.51.
a. What is the cross-rate in terms of yen per pound? (Round your answer to 2 decimal places, e.g., 32.16.)
Cross-rate ¥/£
b. Suppose the cross-rate is ¥131 = £1. What is the arbitrage profit per dollar used? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Arbitrage profit $