If quoted exchange rates are the same across different locations, then ____ is not feasible.
A)triangular arbitrage
B)covered interest arbitrage
C)locational arbitrage
D)A and C

Question

Quizplus · Accepted Answer

Locational arbitrage relies on differences in exchange rates across locations, and triangular arbitrage depends on discrepancies in cross-exchange rates. If rates are the same everywhere, neither can be profitably pursued.

If Quoted Exchange Rates Are the Same Across Different Locations