Which of the following is an example of interest arbitrage?

Which of the following is an example of interest arbitrage?



A) investing in debt instruments in different currencies or different countries
B) selling U.S. dollars for Swiss francs, then selling Swiss francs for British pounds, then selling British pounds for U.S. dollars
C) investigating different commercial banks to find the best exchange rate
D) an American investing in a London-based company




Answer: A


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