What should the price of the pound to the swiss franc be in, Financial Management

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What should the price of the pound to the swiss franc be in

When the Swiss franc spot rate was quoted at USD0.55 in New York, the US market was quoting sterling at USD1.60.

(a) What should the price of the pound to the Swiss franc be in Zurich?

(b) If sterling were quoted at CHF2.80 to the pound sterling in Zurich, what profit opportunities would exist?

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Financial Management: What should the price of the pound to the swiss franc be in

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Financial Management: What should the price of the pound to the swiss franc be in

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