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Assume the bid rate of a Norwegian krone is $0.1042 while the ask rate is $.1094 at Bank A. Assume the bid rate of the

Assume the bid rate of a Norwegian krone is $0.1042 while the ask rate is $.1094 at Bank A. Assume the bid rate of the Norwegian krone is $.0999 while the ask rate is $.1039 at Bank B. Given this information, what would be your gain if you use $2,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $2,000,000 you started with?

$6,064

$5,197

$5,775

$6,352

$5,486

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