In New York,you Can Exchange $1 for €0

question 71

Multiple Choice

In New York,you can exchange $1 for €0.7538 or £0.6789.In Berlin,£1 costs €1.1087.How much profit can you earn on $1,000 using triangle arbitrage?

• A)$1.09
• B)$1.17
• C)$1.47
• D)$1.58
• E)$1.70

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Definitions:

Equivalent Annual Cost

A cost calculation method that is used to compare the cost effectiveness of different investments or projects with different lifespans.

Tax Shield

A deduction allowed by the tax laws to reduce taxable income, thus lowering the overall taxes owed by an individual or an organization.

Mutually Exclusive

Two events that cannot happen at the same time, requiring a choice to be made between them.

Legal Fees

Charges for services provided by lawyers or law firms.