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Exchange rates

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1. Suppose the price of gold is 155 marks.

a) If the dollar price of gold is $100 per ounce, what should you expect the dollar price of a mark to be?
b) If it actually only costs $0.60 to purchase one mark, how could one make arbitrage profits?

2. Fill in the missing exchange rates in the following table:
US dollar British pound German mark Yen
US dollar $1 $1.50 $0.50 $0.01
British pound £0.67
German mark DM2.0
Japanese yen ¥100

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