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Suppose the pound is pegged to gold at GBP5 per ounce in the UK, while the dollar is pegged at USD12 per ounce in the

Suppose the pound is pegged to gold at GBP5 per ounce in the UK, while the dollar is pegged at USD12 per ounce in the US. The current exchange rate is 2.5 USD/GBP. The shipping costs are GBP2 per ounce between the US and the UK. Is there an arbitrage opportunity and if so, how would you take advantage of it?
A.
No, there is no arbitrage opportunity
B.
Yes, buy gold in the UK and sell gold in the US
C.
Yes, buy gold in the US and sell gold in the UK
D.
None of the above

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