Question 14

The exchange rates in New York for $1 are C$1.248 and .5336. In Toronto, C$1 will buy .4302. How much profit can you earn on $3,000 using triangle arbitrage?

$18.49

$19.92

$20.10

$20.67

$21.03

Question 12 The Hong Kong dollar has long been pegged to the U.S. dollar at HK$7.80/$. When the Chinese yuan was revalued in July 2005 against the U.S. dollar from Yuan8.28/$ to Yuan 6.56/$, how did the value of the Hong Kong dollar change against the yuan?

HK$ 0.96/ Yuan

HK$ 1.06/ Yuan

HK$ 1.19/ Yuan

HK$ 1.26/ Yuan