Following Exchange and Interest Rate Quotations in 1998 Were Observed

question 37

Multiple Choice

following exchange and interest rate quotations in 1998 were observed: $\begin{array}{|l|c|c|c|c|c|c|c|}\hline&\text {Eurocurrency rates}&&&\text {Exchange rate per \$ }\\\hline& \begin{array}{c}\text { 90-days (\% annum) } \\\text { (Discretely-compounded) }\end{array} && \text { Spot } && \begin{array}{c}\text { 90-day } \\\text { forward }\end{array} \\ \hline & \$ & \text { DM } & £ & \text { DM } & £ & \text { DM } & £ \\\hline\text { Bid: } & 155 / 8 & 77 / 8 & 121 / 4 & 1.881 & 4961 & 1.801 & 4937 \\\hline\text { Ask: } & 16 & 81 / 4 & 13 & 1.843 & 4902 & 1.773 & 4889\\\hline\end{array}$ An arbitrage profit can be obtained by

• A) borrowing pounds and lending dollars
• B) borrowing dollars and lending DM
• C) borrowing DM and lending pounds
• D) there are no arbitrage opportunities

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Definitions:

Complainants

Individuals who bring forth a complaint or accusation in a legal or formal setting, claiming to have suffered a wrongdoing.

Integrity Of Police Practice

The adherence to ethical practices, honesty, and professionalism by law enforcement agencies.

Legal Basis

The foundation or justification grounded in law, for a belief, action, or policy.

Stop And Frisks

A police procedure where individuals are stopped and searched for weapons or contraband based on reasonable suspicion.