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    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

    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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    https://brainmass.com/business/arbitrage-pricing-theory/locational-arbitrage-finance-148129

    Solution Preview

    6. Locational Arbitrage

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

    BANK X BANK Y ...

    Solution Summary

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

    $2.19

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