Question
1. LOCATIONAL ARBITRAGE: The following quotes for the Brazilian Real (US $ per Br. Real) are available in two different banks: Bank X Bank Y
1. LOCATIONAL ARBITRAGE:
The following quotes for the Brazilian Real (US $ per Br. Real) are available in two different banks:
Bank X Bank Y
Bid $0.3120/Br. Real $0.3452/Br. Real
Ask $0.3230/Br. Real $0.3610/Br. Real
You have 1 million dollars. Outline the strategy and the profit from location arbitrage.
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
