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Assume the bid rate of a Australian dollar is $.6820 while the ask rate is $.6835 at Bank X. Assume the bid rate of the

Assume the bid rate of a Australian dollar is $.6820 while the ask rate is $.6835 at Bank X. Assume the bid rate of the Australian dollar is $.6845 while the ask rate is $.6855 at Bank Y. Given this information, is it possible to do a locational arbitrage and make a profit? If yes, explain the steps and calculate your gain if you use $1,000,000 for your locational arbitrage. ( show your answer )

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