Assume That You Can Buy 250 Canadian Dollars with 100 $\le$

question 79

Multiple Choice

Assume that you can buy 250 Canadian dollars with 100 British pounds.Which one of the following statements is correct given the following exchange rates? Assume that you start out with British pounds.

• A)You can not earn a profit given the current exchange rates.
• B)You can earn a profit of\(\le\)2.47 by using triangle arbitrage.
• C)You can earn a profit of C$1.17 by using triangle arbitrage.
• D)You can earn a profit of \(\le\)1.17 by using triangle arbitrage.
• E)You can earn a profit of C$2.47 by using triangle arbitrage.

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Definitions:

Innervated

Supplied or stimulated by nerves, referring to organs or tissues that receive nerve fibers allowing them to function.

Musculocutaneous

Refers to something related to both muscle and skin.

Student T Distribution

A probability distribution that estimates the mean of a population by using a small sample size when the population variance is unknown.

Robust

Describes a system, model, or test that remains effective under a wide variety of conditions or assumptions.