2) At Webster Bank, the bid rate of a New Zealand dollar is $.36 while the...

 

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2) At Webster Bank, the bid rate of a New Zealand dollar is $.36 while the ask rate is $.365. At National Bank, the bid rate of the New Zealand dollar is $.35 while the ask rate is $.355. Given this information, what would be your gain if you have1 $1,000,000 and execute locational arbitrage? How much will you end up with over and above the $1,000,000 you started with? $ 2) At Webster Bank, the bid rate of a New Zealand dollar is $.36 while the ask rate is $.365. At National Bank, the bid rate of the New Zealand dollar is $.35 while the ask rate is $.355. Given this information, what would be your gain if you have1 $1,000,000 and execute locational arbitrage? How much will you end up with over and above the $1,000,000 you started with? $