Suppose that the pound is pegged to gold at 20 per ounce and the dollar is pegged to gold at $35 per ounce. If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation? Assume that you have $350 available for investment and consider the following two strategies.

(I) Start with $350. Buy gold with dollars at $35 per ounce. Convert the gold to at 20 per ounce. Exchange the for dollars at the current rate of $1.80 per pound to get $.

(II) Start with $350. Exchange the dollars for pounds at the current rate of $1.80 per pound. Buy gold with pounds at 20 per ounce. Convert the gold to dollars at $35 per ounce

Group of answer choices

Both (I) and (II)

None of the other answers

Only (II)

Only (I)