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A currency dealer in Miami quotes the Colombian peso versus the USD at a bid price of 1745 COP per USD and an ask price

A currency dealer in Miami quotes the Colombian peso versus the USD at a bid price of 1745 COP per USD and an ask price of 1750 COP per USD. A currency dealer in Bogot quotes a bid price of 1734 COP per USD and an ask price of 1743 COP per USD. Which of the following statements is true?

___ There is not an exploitable violation of the law of one price.

___ Arbitrage profits can be made by selling USD in exchange for COP in Miami while buying USD with COP in Bogot.

___ Arbitrage profits can be made by selling USD in exchange for COP in Bogot while buying USD with COP in Miami.

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