Assume the Following Information:​ Exchange Rate of Japanese Yen in U.S

question 26

Multiple Choice

Assume the following information:​ Exchange rate of Japanese yen in U.S.$
=
$) 011
Exchange rate of euro in U.S.$
=
$1) 40
Exchange rate of euro in Japanese yen
=
140 yen
​
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?

• A) ​$100,000
• B) ​-$90,909
• C) ​10 percent
• D) ​-9.09 percent

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Definitions:

Opaque

Not allowing light to pass through; not transparent or translucent.

Chemical Components

The basic constituents or substances that make up a chemical compound or matter, characterized by specific physical and chemical properties.

Physical Properties

Characteristics of a material that can be observed or measured without changing the substance's identity, such as density, color, or melting point.

Phosphorous

A reactive, nonmetallic element essential for life, involved in energy transfer and the formation of bones and teeth.