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Assume the bid on the Canadian dollar is $0.650 while its ask rate is $0.668 at Bank A. For Bank B its bid rate is
- Assume the bid on the Canadian dollar is $0.650 while its ask rate is $0.668 at Bank A. For Bank B its bid rate is $0.645 and its ask rate is $0.649. Given this information, what would be your gain if you use $3,000,000 and execute locational arbitrage? Thus, how much will you end up with over and above the $3,000,000 you started with?
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