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6. 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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This solution is comprised of a detailed explanation to outline the strategy and the profit from engaging in locational arbitrage.

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6. Locational Arbitrage

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

BANK X BANK Y ...

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