Which of the Following Is an Example of Triangular Arbitrage

question 52

Multiple Choice

Which of the following is an example of triangular arbitrage initiation?​

• A) ​buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask
• B) ​buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand (SAR)/Singapore dollar (S$) exchange rate at SAR2.50 when the spot rate for the rand is $.20
• C) ​buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $.20
• D) ​converting funds to a foreign currency and investing the funds overseas

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