A Trader Who Simultaneously Bought Swiss Francs in New York

question 75

Multiple Choice

A trader who simultaneously bought Swiss francs in New York for 1.0222 and sold them in Zurich for 1.0233 would be practicing

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

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Definitions:

External Influences

Factors outside of an individual that affect their attitudes, decisions, and behaviors, including cultural, social, and environmental forces.

Profit Sharing

A business strategy where employees receive a share of the company's profits in addition to their regular salary.

Cost Savings

Reduction of expenses achieved through efficiency improvements, elimination of waste, or negotiation of lower prices.

Core Dimensions

Fundamental aspects or elements that define the structure or essence of a subject or system.