Which of the Statements Below Is TRUE

question 35

Multiple Choice

Which of the statements below is TRUE?

• A)The foreign rate is derived by pricing two currencies against a third.
• B)All domestic rates can be computed using a setup with American rates and European rates with the U.S.dollar as the home currency.
• C)The opportunity to make a profit without risk by exchanging three currencies is known as triple arbitrage.
• D)When cross rates are out of line,there can be an arbitrage opportunity.

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Definitions:

Self-Absorbed

Excessively preoccupied with one's own thoughts, feelings, and interests, often at the expense of others' needs or feelings.

Opportunistic

Behavior or tendencies characterized by taking immediate advantage of circumstances with little regard for principles or consequences.

Ambitious

Characterized by a strong desire for success or achievement.

Ethical Theory

A system of principles that helps determine what is morally right and wrong, guiding ethical decision-making.