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Bank 1 Bank USD/KRW Bank 2 Bank 4 Bid $ 1,127.00 $ 1,130.00 $ 1,134.00 $ 1,129.00 $ 1,131.00 3 $ 1,128.00 $ 1,130.00 Ask

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Bank 1 Bank USD/KRW Bank 2 Bank 4 Bid $ 1,127.00 $ 1,130.00 $ 1,134.00 $ 1,129.00 $ 1,131.00 3 $ 1,128.00 $ 1,130.00 Ask $ 1,129.00 Find the Locational Arbitrage Profit assuming that you have 1 million dollars in USD. Must answer in USD How does the market adjust to this arbitrage profit? The bid of bank 1 will go down The ask of bank 4 will go up The bank 3 bid price will go down the ask price of bank 2 will go down

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