Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335

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Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335 at Bank X. Assume the bid rate of the New Zealand dollar is $.32 while the ask rate is $.325 at Bank Y. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with?

Posted Date: May 18, 2024 09:16 PM

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Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335

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