Multiple Choice
Assume that the exchange rate between the euro and the dollar is €1 = $1.20.A camera that retails for $300 in New York sells for €200 in Berlin.Ignoring any transaction costs or barriers,this represents an initial arbitrage profit potential of:
A) $60.
B) $80.
C) $20.
D) $100.
Correct Answer:
Verified
Correct Answer:
Verified
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