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Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ¥115 = $1. Rinaldo finds out that the rate quoted in New York at 10:00 a.m. (3:00 p.m. London time) is ¥135 = $1. Rinaldo decides to buy yen in New York and sell it in London. Rinaldo is engaging in

Respuesta :

Answer: arbitrage

Explanation:

Based on the information given in the question, we can infer that Rinaldo is engaging in arbitrage.

This is an example of currency arbitrage as it involves Rinaldo buying and selling the currency pairs that's gotten from different brokers in order to be able to take advantage of mispriced rates.

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