Question
Triangular arbitrage.Great Exchanges, Inc. is a currency exchange company located at most international airports. Today, a clerk has made a mistake on one of the
Triangular arbitrage.Great Exchanges, Inc. is a currency exchange company located at most international airports. Today, a clerk has made a mistake on one of the currency exchanges and has posted the following rates:
$ for | for | for $ | for $ | for | $ for |
0.5386 | 1.3682 | 1.3634 | 1.8567 | 1.1009 | 0.7335 |
Which corresponding rates do not match? If you have
$10,000,
how much would you make on one pass through the currencies if you went the wrong way for the arbitrage?
Question content area bottom
Part 1
Which corresponding rates do not match?(Select the best response.)
A.
"
for
"
and
"
for
"
rates.Your answer is correct.
B.
"
for $" and "$ for
"
rates.
C."$ for
"
and
"
for $" rates.
Part 2
If you have
$10,000,
how much would you make on one pass through the currencies if you went the wrong way for the arbitrage? Enter a positive number for a profit and a negative number for a loss.
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