If the Prices Differed in London and New York and a Dealer

Multiple Choice

If the prices differed in London and New York and a dealer spent $1 million to purchase ¥125 million, then sold that ¥125 immediately for $1.046666 million, the trader would earn a profit of $46,666 on the transaction.This is accomplished through

A) arbitrage
B) skimming
C) FDI.
D) pre exchange agreements
E) buying low and selling high