Multiple Choice
Suppose the price of gold in New York is $1750 per ounce,while the price of gold in London is $1760.If there are transaction costs of 0.5% when buying or selling in either market,what is the net effect of buying one ounce of gold in New York and selling it in London?
A) $1.25
B) $1.20
C) -$7.55
D) -$1.25
E) $10.00
Correct Answer:
Verified
Correct Answer:
Verified
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