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Paula has $100,000. The following quotations are available to her for US dollars ($), Euros () and Yen (). She may either buy or sell
Paula has $100,000. The following quotations are available to her for US dollars ($), Euros () and Yen (). She may either buy or sell at the stated rates:
U.S. Bank: $1.15/
French Bank: 0.0098/
Japanese Bank: 90.40/$
What is Paulas approximate arbitrage profit assuming a triangle arbitrage is possible?
A. $7,104
B. $8,021
C. $1,846
D. $7,037
E. $1,881
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