What must be the exchange rate between the franc and the


1. You observe that the dollar price of the Swiss Franc is $0.85 and the dollar price of the Yen is $0.08. What must be the exchange rate between the Franc and the Yen for there to be no arbitrage opportunity?

2. Change the assumptions and calculate the amount of payment to Memorial Hospital under the following two scenarios: 500 patient days per 1,000 400 patient days per 1,000

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