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2. Assume the bid rate of a New Zealand dollar is $.43 while the ask rate is $.438 at Bank X Assume the bid rate

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2. Assume the bid rate of a New Zealand dollar is $.43 while the ask rate is $.438 at Bank X Assume the bid rate of the New Zealand dollar is $.44 while the ask rate is $.445 at Bank Y Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with? A) $2,000, B) $4,566. C) $4,356. D) $2,200

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