1.) Locational Arbitrage: Assume the following information:

	Beal Bank	Yardley Bank
Bid price of New Zealand dollar	$.401	$.398
Ask price of New Zealand dollar	$.404	$.400

Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1 million to use. What market forces would occur to eliminate any further possibilities of locational arbitrage?

2.) Triangular Arbitrage: Assume the following information:

	Quoted Price
Value of Canadian dollar in U.S. dollars	$.90
Value of New Zealand dollar in U.S. dollars	$.30
Value of Canadian dollar in New Zealand dollars	NZ$3.02

Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had $1 million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage?