Suppose Sumitomo Bank quotes the ¥/$ exchange rate as 110.30-.50 and Nomura Bank quotes 110.50-.70.In this case,
A) there is no arbitrage opportunity.
B) you can make money by buying dollars at Sumitomo Bank and selling dollars at Nomura.
C) you can make money by buying dollars at Nomura Bank and selling dollars at Sumitomo.
D) You can make money by buying dollars at Sumitomo Bank and selling yens at Nomura Bank.
Correct Answer:
Verified
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