Triangle Arbitrage

question 63

Multiple Choice

Triangle arbitrage:

• A)no longer exists as all currencies have obtained equilibrium on an ongoing basis.
• B)prevents exchange markets from obtaining equilibrium.
• C)opportunities can exist in either the spot or the forward market.
• D)requires three currencies that are correctly priced plus one incorrectly priced currency.
• E)is rarely profitable.

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Definitions:

Locale

A place or setting of an event, story, or situational context, often significant to its narrative or functionality.

Venue Questions

Legal issues regarding the most appropriate location or jurisdiction where a trial should be held.

Forum Selection Clauses

Provisions in a contract that designate the specific court or jurisdiction where disputes will be resolved.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party, court, or administrative body in an effort to exercise jurisdiction over that person so as to enable that person to respond to the proceeding before the court, body, or other tribunal.