Given that the exchange rate between two currencies differs, Financial Management

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Given that the exchange rate between two currencies differs

Given that the exchange rate between two currencies differs in two locations, investors will buy low where the price is lower and sell in the market that has the higher price. This process is known as and it will quickly cause the exchange rate between two currencies to in both locations.

(a) arbitrage; converge

(b) triangular arbitrage; converge

(d) triangular arbitrage; diverge

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Financial Management: Given that the exchange rate between two currencies differs

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