Use the Table for the Question(s)below

Multiple Choice

Use the table for the question(s) below.
Consider the following prices from a McDonald's Restaurant:

-A McDonald's Big Mac value meal consists of a Big Mac, a large Coke and a large fries. Assume that there is a competitive market for McDonald's food items and that McDonald's sells the Big Mac value meal for $4.79. Does an arbitrage opportunity exists and, if so, how would you exploit it and how much would you make on one value meal?

A) No, no arbitrage opportunity exists.
B) Yes, buy a value meal and then sell the Big Mac, Coke and fries to make arbitrage profit of $0.38.
C) Yes, buy a Big Mac, Coke and fries, then sell a value meal to make arbitrage profit of $1.09.
D) Yes, buy a Big Mac, Coke and fries, then sell a value meal to make arbitrage profit of $0.68.