Execute locational arbitrage

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Assume the bid rate of a Swiss franc is $0.430 while the ask rate is $.475 at Bank X. Assume the bid rate of the Swiss franc is $.460 while the ask rate is $0.404 at Bank Y. Given this informa­tion, what would be your gain if you use $4,500,000 and execute locational arbitrage?

Reference no: EM132087064

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