Suppose the Price of Gold in New York Is $1750

question 24

Multiple Choice

Suppose the price of gold in New York is $1750 per ounce,while the price of gold in London is $1760.If there are transaction costs of 0.5% when buying or selling in either market,what is the net effect of buying one ounce of gold in New York and selling it in London?

• A)$1.25
• B)$1.20
• C)-$7.55
• D)-$1.25
• E)$10.00

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Erroneous or false reasoning and beliefs about situations or events.

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