Use the following information about the spot exchange rates to answer the questions 18 - 20.
Suppose that the spot exchange rates for British pound quoted in two locations are:

-Suppose that you have £1 million,you can make arbitrage profit by selling pounds for dollars in _________ and selling dollars for pounds in _______.

Question

Use the following information about the spot exchange rates to answer the questions 18 - 20.
Suppose that the spot exchange rates for British pound quoted in two locations are:
 
-Suppose that you have £1 million,you can make arbitrage profit by selling pounds for dollars in _________ and selling dollars for pounds in _______.

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price differences in different markets. Selling pounds for dollars in New York and then selling those dollars for pounds in London could exploit differences in exchange rates between the two cities, potentially yielding a profit.

Use the Following Information About the Spot Exchange Rates to Answer