You Are a U

question 78

Multiple Choice

You are a U.S.-based treasurer with $1,000,000 to invest.The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00.If a bank quotes you a cross rate of £1.00 = €1.20 how much money can an astute trader make?

• A)No arbitrage is possible
• B)$1,160,000
• C)$41,667
• D)$40,000

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Definitions:

Integrated Technology Platforms

Common operating systems that can be used across multiple computers connected through the Internet.

Horizontal Structuring

Reflects the way the company subdivides itself.

Chain Of Command

The formal line of authority, communication, and responsibility within an organization.

Licensing

The granting of permission by an authority to an individual or entity to carry out certain activities that would be illegal without said permission.