Currently,you Can Exchange $1 for 100

question 14

Multiple Choice

Currently,you can exchange $1 for 100.37 yen or €0.7538 in New York.In Tokyo,the exchange rate is ¥1 = €0.0077.If you have $1,200,how much profit can you earn using triangle arbitrage?

• A)$18.08
• B)$25.27
• C)$30.32
• D)$31.50
• E)$33.14

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Definitions:

Equity Method

An accounting technique used to record investments in other companies when the investing company has significant influence but does not control the investee.

Total Excess Amortization

Refers to the amount of amortization that exceeds the net carrying value of the intangible asset being amortized.

Fair-Value Allocations

The process of assigning fair values to different assets and liabilities when a company is acquired, as part of the purchase price allocation.

Net Income

The net income a business earns following the deduction of all costs and taxes from its gross revenue.