How could you profit if the exchange rate in London was $2/£ while in New York the exchange rate was $1.95 per pound?
A. Buy dollars in New York and sell them in London.
B. Buy pounds in London and sell them in New York.
C. Buy pounds in New York and sell them in London.
D. Buy dollars in London and sell pounds in New York.
Answer:C
How could you profit if the exchange rate in London was $2/£ while in New York the exchange rate was $1.95 per pound?
A. Buy dollars in New York and sell them in London. B. Buy pounds in London and sell them in New York. C. Buy pounds in New York and sell them in London. D. Buy dollars in London and sell pounds in New York.