Patrick Bank quotes the following for the British pound and…
Patrick Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid PriceQuoted Ask PriceValue of a British pound (£) in $$1.26$1.27Value of a New Zealand dollar (NZ$) in $$0.64$0.65Value of a British pound in New Zealand dollarsNZ$1.86NZ$1.87Compute the cross rate of British pounds in New Zealand dollars. In this case, the British pound is currently ____________ with respect to the New Zealand dollar. Assuming an investor does not have British pounds or New Zealand dollars, the first thing the investor would need to do to execute triangular arbitrage in this situation is ________________.