Find the no-arbitrage cross exchange rate. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00.
A. €0.80/£1.00
B. £1.25/€1.00
C. €1.25/£1.00
D. $1.25/£1.00
Answer: C
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