Examlex

Solved

On Commodity Exchange a It Is Possible to Buy and Sell

question 94

Multiple Choice

On Commodity Exchange A it is possible to buy and sell crude oil at $117 per barrel,while on Commodity Exchange B crude oil can be bought and sold at $118 per barrel.If there are transaction costs of 1% when buying or selling on either exchange,what is the net effect of buying a barrel of oil on Exchange A and selling it on Exchange B?


Definitions:

Religious Reformation

A movement in the 16th century that aimed at reforming the beliefs and practices of the Roman Catholic Church, leading to the creation of Protestant churches.

North America

A continent located in the Northern Hemisphere and mostly in the Western Hemisphere, comprising countries such as the United States, Canada, and Mexico.

Papal Mandates

Orders or commands issued by the Pope, the head of the Roman Catholic Church, concerning religious doctrine, practice, or governance.

Scurvy

A disease resulting from a deficiency of vitamin C, characterized by swollen gums, bleeding, and weakness.

Related Questions