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Question
The euro/dollar exchange rate is 1 = $1.20. If a trader buys a camera that retails for $300 in New York and sells it for 200 in Berlin (ignoring transaction costs, transportation costs, or trade barriers), this represents a potential profit (arbitrage) of _____.
A. $60
B. $80
C. $20
D. $100
E. $40
Answer
This answer is hidden. It contains 69 characters.
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