If CIBC posts 1.10CAD/USD - 1.14 CAD/USD bid-ask exchange rates,Scotiabank posts 1.12CAD/USD - 1.15 CAD/USD bid-ask exchange rates,and RBC posts 1.13-1.16 bid-ask exchange rates,which of the following statements is correct:
A) You can make an arbitrage by exchanging CAD for USD at CIBC and then exchanging USD for CAD at RBC
B) You can make an arbitrage by exchanging USD for CAD at CIBC and then exchanging CAD for USD at RBC
C) You can make an arbitrage but none of these strategies allows you to make the arbitrage
D) Arbitrage is not possible
Correct Answer:
Verified
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