The current yen - dollar exchange rate is 楼89 to $1. Further, the current dollar - pound
exchange rate is $1.52 to 1鈧? Based upon this information, what must be the yen ?
pound exchange rate? What would happen if the actual yen ?pound exchange rate did
not equal this value? Explain.How to find exchange rate with given information?The yen pound exchange rate is 135.28 Yen to the pound (1.52 * 89). If the actual exchange rate is different from that value, it is possible to make a riskless profit (arbitrage) by exchanging the pound to the US$ first and then to the Yen.
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