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You are a trader in metals. You have an opportunity to trade 5 ounces of gold and receive 1 5 ounces of palladium today. Suppose

You are a trader in metals. You have an opportunity to trade 5 ounces of gold and receive 15 ounces of palladium today. Suppose current market price for palladium is $500 per ounce and gold can be bought and sold for a current market price of $1600 per ounce. Should you make this trade? Why?
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No, because you are receiving only 5 ounces and have to give 15 ounces.
Yes, because one ounce of gold is worth $1600 and one ounce of palladium is worth $500.
These are two different metals, and so it is not possible to compare the cost and benefit of the trade.
No, because 5 oz. gold * $1600/oz. gold is more than 15 oz. palladium * $500/oz. palladium

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