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Assume the following information: Eastern Bank Ltd The City Bank Bid Price of Malaysian Ringgit 20.75 Taka 20.35 Taka Ask Price of Malaysian Ringgit 20.85

Assume the following information:

Eastern Bank Ltd

The City Bank

Bid Price of Malaysian Ringgit

20.75 Taka

20.35 Taka

Ask Price of Malaysian Ringgit

20.85 Taka

20.55 Taka

Given this information, is locational arbitrage possible? Why? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had 450000 taka to use.

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