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(Table 2: Exchange Rates for Three Countries) Table 2, Exchange

Question 52

Multiple Choice

(Table 2: Exchange Rates for Three Countries) Table 2, Exchange Rates for Three Countries, provides three exchange rates for currencies of three countries. Use these rates to determine what would happen if someone attempted arbitrage with $100.  Table 2: Exchunge Rates for Three Countries 1 euro =105 yen $1=98 yen $1=9 euro \begin{array}{|c|}\hline\text { Table 2: Exchunge Rates for Three Countries } \\\hline 1 \text { euro }=105 \text { yen } \quad \mid \$ 1=98 \text { yen } \quad \mid \$1=9 \text { euro }\\\hline\end{array}


A) There would be a gain of $4.70.
B) There would be a loss of $3.57.
C) There would be a gain of $7.10.
D) There would be less than $1 of gain or loss.

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