Question: Please show all formulas and explain steps. Thank you! 1. Problem 7.02 (Locational Arbitrage) Algo Assume the following information: Compute the profit from locational arbitrage

Please show all formulas and explain steps. Thank you!

1. Problem 7.02 (Locational Arbitrage) Algo Assume the following information: Compute the profit from locational arbitrage if you had $2 million to use. Round your answer to the nearest dollar. $ What market forces would occur to eliminate any further possibilities of locational arbitrage? The large demand for New Zealand dollars at Yardley Bank will force this bank's ask price on New Zealand dollars to . The large sales of New Zealand dollars to Beal Bank will force its bid price

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