On Commodity Exchange A, It Is Possible to Buy and Sell

question 71

Multiple Choice

On Commodity Exchange A, it is possible to buy and sell crude oil at $116 per barrel, while on Commodity Exchange B crude oil can be bought and sold at $117 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?

• A) -$1.33
• B) -$0.67
• C) $1.06
• D) $1.60

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Definitions:

TPM

Trusted Platform Module, a hardware-based security feature that provides cryptographic services to enhance the security of computer systems.

NAS

Network-attached storage is a file-level storage architecture that makes data more accessible to networked devices.

Application Logs

Files that record events, actions, and errors within software applications, aiding in monitoring and troubleshooting.

System

An organized set of related components that function together to achieve a specific goal or perform a specific task, within the context of computing or otherwise.