Which of the Following Is an Example of Triangular Arbitrage

question 3

Multiple Choice

Which of the following is an example of triangular arbitrage initiation?

• A) buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask.
• B) buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand (SAR)/Singapore dollar (S$) exchange rate at SAR2.50 when the spot rate for the rand is $.20.
• C) buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $.20.
• D) converting funds to a foreign currency and investing the funds overseas.

---

Definitions:

Preference

A predisposition or inclination towards a particular choice or action among various alternatives.

Conflict Resolution

Strategies and processes used to address and resolve disputes, disagreements, or differences among project stakeholders or team members.

Default Approach

The standard or automatic method of proceeding in a situation, often used when no specific alternative has been chosen.

Project Managers

Professionals responsible for planning, executing, and closing projects, ensuring goals are met within constraints.