Read the following information: American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); Indian national bank quotes a bid rate of $0.024 and an ask rate for $0.025. Locational arbitrage would involve _______. A. buying rupees from National Bank at the bid rate and selling them to American Bank at the ask rate B. buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate C. buying rupees from American Bank at the ask rate and selling to National Bank at the bid rate D. buying rupees from American Bank at the bid rate and selling them to National Bank at the ask rate
Read the following information: American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); Indian national bank quotes a bid rate of $0.024 and an ask rate for $0.025. Locational arbitrage would involve _______. A. buying rupees from National Bank at the bid rate and selling them to American Bank at the ask rate B. buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate C. buying rupees from American Bank at the ask rate and selling to National Bank at the bid rate D. buying rupees from American Bank at the bid rate and selling them to National Bank at the ask rate
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Read the following information:
American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR);
Indian national bank quotes a bid rate of $0.024 and an ask rate for $0.025.
Locational arbitrage would involve _______.
A.
buying rupees from National Bank at the bid rate and selling them to American Bank at the ask rate
B.
buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate
C.
buying rupees from American Bank at the ask rate and selling to National Bank at the bid rate
D.
buying rupees from American Bank at the bid rate and selling them to National Bank at the ask rate
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