Is there an opportunity for two-point arbitrage?

Is there an opportunity for two-point arbitrage?

Suppose: £1 buys €1.50 in NY, Tokyo, and London

Is there an opportunity for two-point arbitrage?




A. Yes, because the direct rates are the same in all markets
B. Yes, because the direct rates differ in all markets
C. No, because the direct rates are the same in all markets
D. No, because the direct rates differ in all markets


Answer: C. No, because the direct rates are the same in all markets


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