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Assume that the euro/pound exchange rate quoted in London at 11:30 a.m. is 1=1.21, and the euro/pound exchange rate quoted in Germany at the same

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Assume that the euro/pound exchange rate quoted in London at 11:30 a.m. is 1=1.21, and the euro/pound exchange rate quoted in Germany at the same time is 1=1.22. A currency trader in Germany uses pounds to purchase euro and then immediately sells the euro to buy pounds in London, thereby making a profit. The currency trader is most likely a Arbitrageur Dealer Hedger Speculator

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