Assume That the Yen/dollar Exchange Rate Quoted in London at 3:00

Multiple Choice

Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥115 = $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is ¥135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in

A) currency swapping.
B) currency speculation.
C) carry trade.
D) arbitrage.
E) hedging.