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Business, 13.02.2020 23:01 mimithurmond03

You are a U. S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00. If a bank quotes you a cross rate of £1.00 = €1.20 how much money can an astute trader make?
A. No arbitrage is possible.
B. $1,160,000.
C. $41,667.
D. $40,000.

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You are a U. S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted a...

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