How can one profit through arbitrage if the dollar per euro exchange rate in London is $2 per pound while in New York is $1.95 per pound?

Question

Quizplus · Accepted Answer

Since the exchange rate is $2 per pound in London and $1.95 per pound in New York, it means that the pound is undervalued in New York. Therefore, one can buy pounds in New York and sell them in London to make a profit from the price difference.

How Can One Profit Through Arbitrage If the Dollar Per