The profit from engaging in locational arbitrage

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Reference no: EM131323222

The following quotes for Euro ($ per Euro) are available in two different banks:

BANK X Bid   1.25556 Ask   1.25610

BANK Y Bid 1.25696 Ask 1.25699

You have 1 million dollars. Outline the strategy and the profit from engaging in locational arbitrage.

Reference no: EM131323222

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The profit from engaging in locational arbitrage : The following quotes for Euro ($ per Euro) are available in two different banks: You have 1 million dollars. Outline the strategy and the profit from engaging in locational arbitrage.
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