Question

Suppose that you have $13,000 to use to engage in locational arbitrage. What is the best option for you to engage in locational arbitrage?

1) Invest in stocks
2) Buy and sell real estate
3) Start a business
4) Invest in foreign currency

Answer 1

The best option for locational arbitrage with $13,000 is to invest in foreign currency.

Step-by-step explanation:

The best option to engage in locational arbitrage with $13,000 would be to invest in foreign currency.

Locational arbitrage involves taking advantage of price discrepancies between different geographical locations. By investing in foreign currency, you can take advantage of exchange rate differences and earn profits.

For example, if the exchange rate between the US dollar and another currency is favorable, you can buy that currency and then sell it back when the exchange rate becomes less favorable, making a profit.