An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dollar. In New York: the British pound rate is $1.35, the euro rate is $0.98, the Canadian dollar rate is 1.34 Canadian dollar, and the Yen rate is 117 Yen.

In London: the British pound rate is $1.38, the euro rate is $0.95, the Canadian dollar rate is 1.31 Canadian dollar, and the Yen rate is 115 Yen.

Which currency provides the better arbitrage and by how much for an investor with a $1000?

	A.	Euro by $31.58
	B.	Pound by $9.36
	C.	Euro by $9.36
	D.	Pound by $31.58

An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dollar. In New York: the British pound rate is $1.35, the euro rate is $0.98, the Canadian dollar rate is 1.34 Canadian dollar, and the Yen rate is 117 Yen.

In London: the British pound rate is $1.38, the euro rate is $0.95, the Canadian dollar rate is 1.31 Canadian dollar, and the Yen rate is 115 Yen.

Which of the following is true?

	A.	the $1.38 rate is direct for the pound and direct for the dollar
	B.	the $1.38 rate is direct for the pound and indirect for the dollar
	C.	the $1.38 rate is indirect for the pound and direct for the dollar
	D.	the $1.38 rate is indirect for the pound and indirect for the dollar