Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m.is *120 = $1,and the New York yen/dollar exchange rate at the same time is *125 = $1.A dealer makes a profit by buying a currency low and selling it high.The dealer has engaged in a(n):

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This scenario describes a case of arbitrage, where the dealer can buy yen at a lower price in London and immediately sell it at a higher price in New York, thus making a profit from the price difference. Currency swaps, backwardation, and straddles are not applicable in this context.

Assume That the Yen/dollar Exchange Rate Quoted in London at 3:00