Question: Assume the following information: Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from

Assume the following information:

Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1 million to use. What market forces would occur to eliminate any further possibilities of locationalarbitrage?

Beal Bank Bid price of New Zealand dollar $401 Ask price of New Zealand dollar $.404 Yardley Bank $398 $.400

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