An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dollar. In New York: the British pound rate is $1.35, the euro rate is $0.98, the Canadian dollar rate is 1.34 Canadian dollar, and the Yen rate is 117 Yen.
In London: the British pound rate is $1.38, the euro rate is $0.95, the Canadian dollar rate is 1.31 Canadian dollar, and the Yen rate is 115 Yen.
Which currency provides the better arbitrage and by how much for an investor with a $1000?
A. Euro by $31.58
B. Pound by $9.36
C. Euro by $9.36
D. Pound by $31.58