Assume the Following Information: Assume You Have $100,000 to Conduct

question 67

Multiple Choice

Assume the following information: Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?

• A) $6,133
• B) $2,368
• C) $6,518
• D) $13,711

---

Definitions:

Contract Rate

The interest rate stipulated in a contract or agreement, often related to loans, bonds, or other financial instruments.

Market Rate

The prevailing price or interest level determined by the supply and demand dynamics in a competitive marketplace.

Journal Entry

A record of a financial transaction in the accounting system that includes the date, accounts affected, amounts, and description of the transaction.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price, usually at a premium to the face value.