Mr. Mohammed is specialized in cross-rate arbitrage and noticed the below quotes: OMR 0.250/ USD, INR 75/USD, INR 325/OMR. Which one of the following statements represent the above? O a. None of the options O b. The quoted cross-rate is higher at INR/OMR hence the triangular arbitrage is not possible O c. The quoted cross-rate is higher at OMR/INR hence the triangular arbitrage is not possible O d. The quoted cross-rate is higher at INR/OMR hence the triangular arbitrage is possible

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Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.