You own $13,000. The dollar rate in Tokyo is 217.4108/$.

The yen rate in New York is given in the following table:

Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain in dollars?

"Assuming no transaction costs, the rates in Tokyo and New York are out of line. Therefore, arbitrage profits are possible."

The statement above is __ True/False

\begin{tabular}{|lcc|} \hline \multicolumn{3}{|l|}{ Selling Quotes for Foreign Currencies in New York } \\ \hline Country-Currency & Contract & \$/Foreign Currency \\ \hline Japan-yen & Spot & 0.004667 \\ & 30-day & 0.004711 \\ & 90-day & 0.004798 \end{tabular}