Based on Exhibit B, the most appropriate recommendation regarding the triangular arbitrage trade is to: A. decline

Question:

Based on Exhibit B, the most appropriate recommendation regarding the triangular arbitrage trade is to:

A. decline the trade, as no arbitrage profits are possible.

B. execute the trade; buy BRL in the interbank market and sell it to the dealer.

C. execute the trade; buy BRL from the dealer and sell it in the interbank market.

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Economics For Investment Decision Makers

ISBN: 9781118111963

1st Edition

Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto

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