The currencies of two small economies, Opal and Jade respectively are O and J. The exchange rate is EO/J= O4/J and the trade cost between the countries is 15%. Oranges are sold for O5/Ib in Opal and in Jade identical oranges are sold for J2/Ib. As such, there ____ an arbitrage opportunity in trading oranges, and price differences ____ persist for oranges between Opal and Jade