Golden Rule. Under the gold standard, the price of an ounce of gold in U.S. dollars was $ 20.62, while the price of that same ounce in British pounds was pound 3.8552£. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $ 42.18 per ounce of gold? The implied $/pound£ exchange rate if the U.S. dollar price is $ 20.62 oz of gold is $? /£ (Round to four decimal places.) The implied $/pound£ exchange rate if the U.S. dollar price had been $ 42.18 oz of gold is $ ? /£. (Round to four decimal places.)
Golden Rule. Under the gold standard, the price of an ounce of gold in U.S. dollars was $ 20.62, while the price of that same ounce in British pounds was pound 3.8552£. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $ 42.18 per ounce of gold? The implied $/pound£ exchange rate if the U.S. dollar price is $ 20.62 oz of gold is $? /£ (Round to four decimal places.) The implied $/pound£ exchange rate if the U.S. dollar price had been $ 42.18 oz of gold is $ ? /£. (Round to four decimal places.)
Chapter22: International Financial Management
Section: Chapter Questions
Problem 1P
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Golden Rule. Under the gold standard, the price of an ounce of gold in U.S. dollars was $ 20.62, while the price of that same ounce in British pounds was pound 3.8552£. What would be the exchange rate between the dollar and the pound if the U.S. dollar price had been $ 42.18 per ounce of gold?
The implied $/pound£ exchange rate if the U.S. dollar price is $ 20.62 oz of gold is $? /£ (Round to four decimal places.)
The implied $/pound£ exchange rate if the U.S. dollar price had been $ 42.18 oz of gold is $ ? /£. (Round to four decimal places.)
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