1. (One price principle) On 27 October, an arbitrageur in London was following the exchange rates in Asheville. At that time, $1 was traded for €0.8251 and £0.4111 (you can’t change directly pounds into Euros and vice versa in Asheville). At the same time in London, ₤1 was traded for €1.9608 and $2.4390.