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

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This transaction is an example of arbitrage, which involves buying a product in one market where it is underpriced and selling it in another market where it is overpriced to make a profit on the price difference.

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