MAFA Problem..!!!

Sunali (Learner) (1317 Points)

10 January 2009  

Hey Frendz..got stuck with following problem..if anyone can help..!!

 

The Price of the pound sterling was quoted at $ 1.80 in New York and on the same date the DM spot rate was quoted at $ 0.40.

 

What would be the expected price of the pound to be in Germany? If the pound was quoted in Frankfurt at DM 4.40/pound, what would be done to profit from the situation..?

 

Thanks...