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QUESTION 18 Assume you have 1,000 and can exchange CAD1,735 for 1,000. Also assume you can exchange USD1 for CAD1.36 and 1 for USD1.26. How

QUESTION 18

  1. Assume you have 1,000 and can exchange CAD1,735 for 1,000. Also assume you can exchange USD1 for CAD1.36 and 1 for USD1.26. How much arbitrage profit in pounds can you earn? (Ignore transaction costs.)

    a

    14.41
    b

    13.97
    c

    13.62
    d

    12.49
    e

    11.98

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