You Observe the Following Spot Exchange Rates

question 9

True/False

You observe the following spot exchange rates:
A$1 = £0.4
A$1 = US$0.85
£1 = US$2.125
Assuming no transaction costs,an arbitrage opportunity is possible in this instance.

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Definitions:

T Lymphocytes

A type of white blood cell that plays a central role in cell-mediated immunity, helping to protect the body from infections and cancer.

Thymopoietin

A hormone produced by the thymus gland that plays a role in the immune system by stimulating the development of T-lymphocytes.

Alimentary Canal

The organs of the digestive system that extend from the mouth to the anus.

Mucosa

The innermost layer of the wall of the alimentary canal.