The yen/dollar exchange rate is ¥120 = $1 in London and ¥123 = $1 in New York at the same time. What is the net profit if a dealer takes $1,000,000 to purchase ¥123,000,000 in New York and engages in arbitrage by selling it in London?
A. $34,000
B. $39,454
C. $25,000
D. $20,390
E. $46,666
Answer: C
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