If Quoted Exchange Rates Are the Same Across Different Locations

question 67

Multiple Choice

If quoted exchange rates are the same across different locations, then ____ is not feasible.

• A)triangular arbitrage
• B)covered interest arbitrage
• C)locational arbitrage
• D)A and C

---

Definitions:

Business-Specific Risk

The risk associated with the particular operations, industry, or market of a specific company, apart from the general market risks.

Small Investor

An individual investor who makes relatively small amounts of investments for personal financial goals, not typically professional or institutional.

Higher Returns

Higher Returns denote the increased earnings or gains achieved from an investment, surpassing the original amount invested.

Higher Risk

Higher risk denotes investments or actions that have a greater chance of loss or volatility, often associated with potentially higher returns.