Assume the following information:
$$\begin{array} { l l r }
\text { Exchange rate of Japanese yen in U.S. \$ } & = & \$ .011 \
\text { Exchange rate of euro in U.S. \$ } & = & \$ 1.40 \
\text { Exchange rate of euro in Japanese yen } & = & 140 \text { yen }
\end{array}$$
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) $100,000
B) -$90,909
C) 10%
D) -9.09%

Question

Assume the following information:
$$\begin{array} { l l r } 
\text { Exchange rate of Japanese yen in U.S. \$ } & = & \$ .011 \
\text { Exchange rate of euro in U.S. \$ } & = & \$ 1.40 \
\text { Exchange rate of euro in Japanese yen } & = & 140 \text { yen }
\end{array}$$
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) $100,000
B) -$90,909
C) 10%
D) -9.09%

Quizplus · Accepted Answer

The Answer of Assume the following information:
$$\begin{array} { l l r } 
\text { Exchange rate of Japanese yen in U.S. \$ } & = & \$ .011 \
\text { Exchange rate of euro in U.S. \$ } & = & \$ 1.40 \
\text { Exchange rate of euro in Japanese yen } & = & 140 \text { yen }
\end{array}$$
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?
A) $100,000
B) -$90,909
C) 10%
D) -9.09%

Assume the Following Information What Will Be the Yield for an Investor Who Has