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5. (Locational Arbitrage) 3 pts) Assume the following information: Chase Wells Fargo Bid price of Mexican peso $.045 $.040 Ask price of Mexican peso $.042

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5. (Locational Arbitrage) 3 pts) Assume the following information: Chase Wells Fargo Bid price of Mexican peso $.045 $.040 Ask price of Mexican peso $.042 $.041 Given this information, is locational arbitrage possible? If so, compute the profit from this arbitrage if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of locational arbitrage

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