Which of the Statements Below Is TRUE

question 35

Multiple Choice

Which of the statements below is TRUE?

• A)The foreign rate is derived by pricing two currencies against a third.
• B)All domestic rates can be computed using a setup with American rates and European rates with the U.S.dollar as the home currency.
• C)The opportunity to make a profit without risk by exchanging three currencies is known as triple arbitrage.
• D)When cross rates are out of line,there can be an arbitrage opportunity.

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Definitions:

Market Entry

The strategy or process by which a company enters a new market.

Market Exit

The process of a company stopping its business operations or leaving a market, often due to unprofitability or strategic realignment.

Concentrated Industry

An industry characterized by a few firms controlling a large market share, leading to reduced competition.

Relatively Small

A comparative term indicating that something is smaller in size, amount, or degree when compared to others in a similar context.