If a firm does not have foreign subsidiaries, it is not subject to ____.

transaction exposure

transaction exposure AND economic exposure

translation exposure

economic exposure

Assume the bid rate of a Singapore dollar (S$) is $/ S$ 0.40 while the ask rate is $/ S$ 0.41 at Bank X. Assume the bid rate of a Singapore dollar is $/ S$ 0.42 while the ask rate is $/ S$ 0.425 at Bank Z. Given this information, what would be your gain if you use $500,000 and execute locational arbitrage? That is, how much will you end up with over and above the $500,000 you started with?

$5,847

$19,295.5

$5,882

$12,195