The Exchange Rates in New York Are ¥1000 = $9

question 1

Multiple Choice

The exchange rates in New York are ¥1000 = $9 and the exchange rates in Tokyo are ¥171 = $1.5.You incur a transaction fee of 0.1% when buying and selling in each market.You have $1 million dollars with which to purchase foreign currency.What is your maximum potential profit from exploiting the arbitrage opportunity?

• A)$0
• B)$0.024 million
• C)$0.026 million
• D)-$0.024 million
• E)-$0.026 million

---

Definitions:

Internal Supply

The resources, including workforce and materials, available within a company for production or service delivery.

Employee Retention

Strategies and practices aimed at keeping employees engaged and motivated to stay with an organization for a long period, reducing turnover rates.

Transitional Supply

The interim or temporary provision of resources or services to an organization during periods of change or development.

Skills Gap

A discrepancy between the skills that employers want or need and the skills that their workforce currently possesses.