Assume You Can Exchange $1 for Either £1 or

question 78

Multiple Choice

Assume you can exchange $1 for either £1 or ? .50 in the U.S.In the London market,you can exchange £1 for ?
) 52.This situation creates an opportunity to profit immediately
From which one of the following?

• A)Futures arbitrage
• B)Currency hedge
• C)Interest rate swap
• D)Absolute purchasing power parity
• E)Triangle arbitrage