Profit from engaging in locational arbitrage


Locational Arbitrage

The following quotes for Euro ($ per Euro) are available in two different banks:

         BANK X    BANK Y

Bid    1.25556    1.25696
Ask    1.25610    1.25699

You have 1 million dollars. Outline the strategy and the profit from engaging in locational arbitrage.

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Finance Basics: Profit from engaging in locational arbitrage
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