Which of the Following Is True Given the Following Quotes

question 19

Multiple Choice

Which of the following is true given the following quotes for foreign exchange: 1.68-1.70$/£; 1.43-1.45$/€; 1.13-1.15€/£

• A) Triangular arbitrage is not possible
• B) Triangular arbitrage is possible and it involves exchanging $ for £
• C) Triangular arbitrage is possible and it involves exchanging £ for $
• D) None of these

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Definitions:

Promoter

A person or entity that initiates the establishment of a company by finding investors, preparing contracts, and registering the business.

Reimburse

To reimburse is to pay back or compensate someone for expenses they have incurred.

Incorporation

The process of legally declaring a corporate entity as separate from its owners.

Mandatory Dividend Provisions

Rules or clauses within a company's charter or bylaws that require the company to pay dividends to its shareholders under certain conditions.