The Direct Rate Exchange for D-Marks Is

question 7

Multiple Choice

The direct rate exchange for D-marks is.56. The indirect exchange rate for pounds is.61. If there is no triangle arbitrage, how many pounds does it take to buy a D-mark?

• A) 0.340.
• B) 3.400.
• C) 0.920.
• D) 1.090.

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