Use the Following Information to Answer Questions 24-25

question 8

Multiple Choice

Use the following information to answer questions 24-25.
Assume that the following exchange rates exist for the U.S. dollar, Japanese Yen and the British Pound.

-If you are an arbitrageur that starts with $1,000 in New York,you will end up with the arbitrage profit of:

• A) $0
• B) $142.86
• C) $446.43
• D) $875.00

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Definitions:

Equilibrium

A state in which market supply and demand are balanced, and as a result, prices become stable.

Market

A place or system where buyers and sellers interact to trade goods, services, or resources.

Price

The money total set, required, or given as remuneration for something.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay.