Multiple Choice
The exchange rates in New York are ¥1000 = $9 and the exchange rates in Tokyo are ¥171 = $1.5.You incur a transaction fee of 0.1% when buying and selling in each market.You have $1 million dollars with which to purchase foreign currency.What is your maximum potential profit from exploiting the arbitrage opportunity?
A) $0
B) $0.024 million
C) $0.026 million
D) -$0.024 million
E) -$0.026 million
Correct Answer:
Verified
Correct Answer:
Verified
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