If the prices differed in London and New York and a dealer spent $1 million to purchase ¥125 million, then sold that ¥125 immediately for $1.046666 million, the trader would earn a profit of $46,666 on the transaction.This is accomplished through

Question

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The dealer is taking advantage of the price difference between London and New York by purchasing currency in one market and selling it immediately in another market at a higher price. This is an example of arbitrage.

If the Prices Differed in London and New York and a Dealer