Assume the following bid and ask rates of the pound for two banks as shown below: Bank: C Bank D Bid $1.61 $1.58 $1.63 $1.60 As locational arbitrage occurs the bid rate for pounds at Bank C will decrease the ask rate for pounds at Bank D will decrease the bid rate for pounds at Bank C will decrease the ask rate for pounds at Bank D will increase. the bid rate for pounds at Bank will increase the ask rate for pounds at Bank D will increase the bid rate for pounds at Bllok C will increase the ask rate for pounds at Bank D will decrease Previous Page