A Trader Who Simultaneously Bought Swiss Francs in New York

question 13

Multiple Choice

A trader who simultaneously bought Swiss francs in New York for .9772 and sold them in Zurich for .9774 would be practicing

• A)simple arbitrage.
• B)inside trading.
• C)compound arbitrage.
• D)parity exploitation.

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Definitions:

Total Output

The total quantity of goods and services produced by an economy or firm during a specific period.

Marginal Cost

The cost incurred by producing one more unit of a product or service.

TVC

TVC, or Total Variable Cost, encompasses the expenses that change in direct relation to the level of output produced, such as raw materials and labor costs.

TFC

Total Fixed Costs, which are expenses that do not change regardless of the level of production or business activity.