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Would alice still be able to make arbitrage profits

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Consider transaction costs at Banko de Mexico where the bid-ask spread is P4.0000/€. Assume Banko de Mexico will buy euros for P20.0316/€ and will sell euros to traders like Jackie for P24.0316/€. Banko de Mexico will also sell Pesos to Jackie for €0.04882/P and will purchase Pesos from Jackie for euros at €0.041611/P. Would Alice still be able to make arbitrage profits? Yes or No? Explain your answer

Reference no: EM131551182

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