Assume the Exchange Rates in New York for $1 Are

question 66

Multiple Choice

Assume the exchange rates in New York for $1 are C$1.1382 and £.6387 while in Toronto, C$1 will buy £.5612.How much profit can you earn on $10,000 using triangle arbitrage?

• A)$.91
• B)$1.08
• C)$.97
• D)$1.03
• E)$1.11

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