Suppose that the pound is pegged to gold at ￡20 per ounce and the dollar is pegged to gold

at $35 per ounce. This implies an exchange rate of $1.75 per pound. If the current market exchange rate is $1.80 per pound, how would you take advantage of this situation Hint: assume that you have $350 available for investment.A．Startwith＄350．Buy10ouncesofgoldwithdollarsat＄35perouncE．Convertthegoldto￡200at￡20perouncE．Exchangethe￡200fordollarsatthecurrentrateof＄1．80perpoundtoget＄360．B．Startwith＄350．Exchangethedollarsforpoundsatthecurrentrateof＄1．80perpounD．Buygoldwithpoundsat￡20perouncE．Convertthegoldtodollarsat＄35perounceC．A．andB．bothworkD．noneoftheabove