Which of the Following Is True Given the Following Quotes

question 17

Multiple Choice

Which of the following is true given the following quotes for foreign exchange: 1.69-1.71$/£; 1.44-1.46$/€; 1.14-1.16€/£

• A) Triangular arbitrage is not possible
• B) Triangular arbitrage is possible and it involves exchanging $ for £
• C) Triangular arbitrage is possible and it does not involve exchanging £ for $
• D) Triangular arbitrage is possible and it involves exchanging £ for $, $ for € and € for $

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Definitions:

Human Rights

The fundamental rights and freedoms that all individuals are entitled to regardless of nationality, sex, national or ethnic origin, race, religion, language, or any other status.

Liquidated Damages

Pre-determined damages specified in a contract that the parties agree on as compensation if one party breaches the contract.

Option To Terminate

A provision in a contract that allows one or more parties to end the agreement under certain conditions, before the completion date.

Force Majeure

A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.