Question
Suppose coffee sells for $5 in Seattle and $3 in Boston.Is there an opportunity for arbitrage here? No. There is no way to exploit these
Suppose coffee sells for $5 in Seattle and $3 in Boston.Is there an opportunity for arbitrage here?
No. There is no way to exploit these price differences
Maybe. It depends on the exchange rate
Yes, by buying in Seattle and selling in Boston
Yes, by buying coffee in Boston and selling it in Seattle
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Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537115, 9780324537116
