Assume the bid rate of a New Zealand dollar is $0.50 while t…
Assume the bid rate of a New Zealand dollar is $0.50 while the ask rate is $0.505 at Bank X. Assume the bid rate of the New Zealand dollar is $0.48 while the ask rate is $0.485 at Bank Y. Given this information, what would be your gain if you use $690,000 and execute locational arbitrage? That is, how much will you end up with over and above the $690,000 you started with?