4. a) You observe the following quotes for the USD/AUD in the spot market from two banks:

Bank of Sydney

Bank of New York

Bid	Ask	Bid	Ask
0.71711	0.71715	0.71708	0.71715

Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use AUD 25,000. If not, explain why arbitrage is not possible?

(b) You observe the following quotes for the GBP /AUD in the spot market from two banks:

Bank of Melbourne

Bank of London

Bid	Ask	Bid	Ask
0.5458	0.5459	0.5514	0.5515

Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use GBP 50,000. If not, explain why arbitrage is not possible?

c) You observe the following quotes for the EUR / USD in the spot market from two banks:

Deutsche Bank

Bank of America

Bid	Ask	Bid	Ask
1.18102	1.18102	1.18094	1.18100

Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use EUR 500,000. If not, explain why arbitrage is not possible?