Question: Assume the bid rate of a New Zealand dollar is $.6874 while the ask rate is $.6880 at NewZBank. At NZB, the bid rate of

Assume the bid rate of a New Zealand dollar is $.6874 while the ask rate is $.6880 at NewZBank. At NZB, the bid rate of the Australian dollar is $.6885 while the ask rate is $.6889. Given this information, what would be your gain if you use $500,000 and execute locational arbitrage?

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