Mary can exchange $100 for 57 GBP. Russell can get 58 GBP for $100 if he exchanges his dollars for yen, and then his yen for pounds. Russell is proﬁting from an activity described as:

Question

Quizplus · Accepted Answer

Russell is engaging in triangle arbitrage by taking advantage of the exchange rates between three different currencies (USD, JPY, GBP) to earn a profit. He is buying yen with dollars at a favorable rate, then using those yen to buy pounds at a different favorable rate. This is a form of arbitrage, which takes advantage of discrepancies in currency exchange rates in different markets.

Mary Can Exchange $100 for 57 GBP