Assume the Following Information What Will Be the Yield for an Investor Who Has

Assume the following information:
$$\begin{array} { l l r } \text { Exchange rate of Japanese yen in U.S. \$ } & = & \$ .011 \\\text { Exchange rate of euro in U.S. \$ } & = & \$ 1.40 \\\text { Exchange rate of euro in Japanese yen } & = & 140 \text { yen }\end{array}$$
What will be the yield for an investor who has $1,000,000 available to conduct triangular arbitrage?

A) $100,000
B) -$90,909
C) 10%
D) -9.09%

Correct Answer:

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