Assume the following information: Exchange rate of Japanese yen in U.S.$
=
$)011
Exchange rate of euro in U.S.$
=
$1)40
Exchange rate of euro in Japanese yen
=
140 yen

What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) $100,000
B) -$90,909
C) 10 percent
D) -9.09 percent

Question

Assume the following information:​ Exchange rate of Japanese yen in U.S.$
=
$)011
Exchange rate of euro in U.S.$
=
$1)40
Exchange rate of euro in Japanese yen
=
140 yen
​
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) ​$100,000
B) ​-$90,909
C) ​10 percent
D) ​-9.09 percent

Quizplus · Accepted Answer

The Answer of Assume the following information:​ Exchange rate of Japanese yen in U.S.$
=
$)011
Exchange rate of euro in U.S.$
=
$1)40
Exchange rate of euro in Japanese yen
=
140 yen
​
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) ​$100,000
B) ​-$90,909
C) ​10 percent
D) ​-9.09 percent

Assume the Following Information:​ Exchange Rate of Japanese Yen in U.S

Assume the Following Information: Exchange Rate of Japanese Yen in U.S