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Suppose that one year ago the spot rate for the British pound was $1.68 per pound, wh -20.00% The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spo Now, the cross rate of the British pound is £1 = pound. pesos. This represents a 25.00% 17.50% 22.50% rate for the peso was $1.05 per peso. e peso was $1 per peso. percent change in the cross rate of the British

Suppose that one year ago the spot rate for the British pound was $1.68 per pound, wh -20.00% The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spo Now, the cross rate of the British pound is £1 = pound. pesos. This represents a 25.00% 17.50% 22.50% rate for the peso was $1.05 per peso. e peso was $1 per peso. percent change in the cross rate of the British

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 41QA
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Suppose that one year ago the spot rate for the British pound was $1.68 per pound, while the spot rate for the peso was $1.05 per peso.
The cross rate of the British pound one year ago was £1 = 
 
 pesos.
 
Suppose that now the spot rate for the British pound is $2.00 per pound, while the spot rate for the peso was $1 per peso.
Now, the cross rate of the British pound is £1 = 
 
 pesos. This represents a      percent change in the cross rate of the British pound.
Suppose that one year ago the spot rate for the British pound was $1.68 per pound, wh -20.00% The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spo Now, the cross rate of the British pound is £1 = pound. pesos. This represents a 25.00% 17.50% 22.50% rate for the peso was $1.05 per peso. e peso was $1 per peso. percent change in the cross rate of the British
Transcribed Image Text:Suppose that one year ago the spot rate for the British pound was $1.68 per pound, wh -20.00% The cross rate of the British pound one year ago was £1 = pesos. Suppose that now the spot rate for the British pound is $2.00 per pound, while the spo Now, the cross rate of the British pound is £1 = pound. pesos. This represents a 25.00% 17.50% 22.50% rate for the peso was $1.05 per peso. e peso was $1 per peso. percent change in the cross rate of the British
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