Multiple Choice
The euro/dollar exchange rate is €1 = $1.20.If a trader buys a camera that retails for $300 in New York and sells it for €200 in Berlin (ignoring transaction costs,transportation costs,or trade barriers) ,this represents a potential profit (arbitrage) of _____.
A) $60
B) $80
C) $20
D) $100
E) $40
Correct Answer:
Verified
Correct Answer:
Verified
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