Business, 17.04.2020 17:04 deyuntamathis
Assume that the law of one price holds. A shirt that retails for $120 in New York sells for£60 in London. The exchange rate between the British pound and the dollar is £1 = $1.50. Assuming away transportation costs and trade barriers, this creates a profit-making opportunity called .
A. currency swap
B. arbitrage
C. carry trade
D. straddle
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Assume that the law of one price holds. A shirt that retails for $120 in New York sells for£60 in Lo...
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