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Suppose $1.51 =1 pound in New York and $1.49=1 pound in London. How can foreign exchange...

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Finance

Suppose $1.51 =1 pound in New York and $1.49=1 pound in London. Howcan foreign exchange arbitrages profit from these exchangearbitrages results in the same dollar/pound exchange rate in NewYork and London

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In the arbitrage process the participants in the exchange market make riskless profits by intelligently exploiting price differences of an asset at different dealing locations There is potential for arbitrage in    See Answer
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Suppose $1.51 =1 pound in New York and $1.49=1 pound in London. Howcan foreign exchange arbitrages profit from these exchangearbitrages results in the same dollar/pound exchange rate in NewYork and London

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