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Assume the following information: Bank A Bank B Bid price of Mexican peso $.051 $.057 Ask price of Mexican peso $.055 $.060 Given this information,

Assume the following information: Bank A Bank B Bid price of Mexican peso $.051 $.057 Ask price of Mexican peso $.055 $.060 Given this information, is locational arbitrage possible? If so, compute the profit from this arbitrage if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of locational arbitrage?

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