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Question
The yen/dollar exchange rate is 120 = $1 in London and 123 = $1 in New York at the same time. What is the net profit if a dealer takes $1,000,000 to purchase 123,000,000 in New York and engages in arbitrage by selling it in London?A.$34,000
B.$20,390
C.$25,000
D.$46,666
E.$39,454
Answer
This answer is hidden. It contains 221 characters.
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