Question
If the direct quote for converting Canadian dollar-euro is 0.7479, what three simultaneous trades could you make to profit from the arbitrage opportunity created by
If the direct quote for converting Canadian dollar-euro is 0.7479, what three simultaneous trades could you make to profit from the arbitrage opportunity created by this pricing differential? A. Trade euros for U.S. dollars, trade U.s. dollars for Canadian dollars, and trade Canadian dollars for euros. B. Trade U.S. dollars for euros, trade euros for Canadian dollars, and trade Canadian dollars for U.S. dollars. C. Trade U.S. dollars for Canadian dollars, trade Canadian dollars for euros, and trade the euros for U.S. dollars. D. Trade Canadian dollars for U.S. dollars, trade U.S. dollars for euros, and trade euros for Canadian dollars.
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