Which bank has the most competitive ask price which bank


Use the following quotes to answer the next three questions:

Direct Market for ¥/MXN                                          Bids                                      asks

Deutsche Bank’s quote:                                         ¥12.04/MXN                      ¥12.10/MXN

Barclays’ quote:                                                    ¥12.02/MXN                      ¥12.08/MXN

CSFB’s quote:                                                       ¥12.01/MXN                      ¥12.08/MXN

Citigroup’s quote:                                                  ¥12.03/MXN                      ¥12.07/MXN

Which bank has the most competitive ask price?

Which bank has the most competitive bid price?

Is there a locational arbitrage opportunity?

Please explain it step by step.

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