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A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barclays in London. The banks
A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barclays in London. The banks give the following quotes on the euro simultaneously.
| Citibank NYC | Barclays London |
| USD0.75510=EUR1.00 (BID) | USD0.75450=EUR1.00 (BID) |
| USD0.75561=EUR1.00 (ASK) | USD0.75475=EUR1.00 (ASK) |
Using $5.5 million or its euro equivalent, compute arbitrage profit in USD.
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