Question 21.2: Shedding Some Pounds Suppose the exchange rates for the Br...

Fundamentals of Corporate Finance Standard Edition

Shedding Some Pounds

Suppose the exchange rates for the British pound and Swiss franc are:

Pounds per $1 = .60

SF per $1 = 2.00

The cross-rate is three francs per pound. Is this consistent? Explain how to make some money.

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