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Below are the quoted bid and ask prices for Kuwaiti Dinar in Dollars at different banks, on June 9 th 2021. Kuwaiti Dinar Quote Bid

Below are the quoted bid and ask prices for Kuwaiti Dinar in Dollars at different banks, on June 9th 2021.

Kuwaiti Dinar Quote

Bid ($)

Ask ($)

HSBC

3.38

3.39

QNB

3.37

3.38

SAIB

3.36

3.37

Question:

  1. Given the information above, is any type of arbitrage possible? Why? Or Why not?
  2. If yes mention the name of the arbitrage opportunity.
  3. If yes then explain the steps that would reflect the arbitrage process and compute the potential profit from this strategy if you had 10,000 USD at your disposal to use for this purpose.
  4. If an arbitrage opportunity does occur, do you think it is worth it for the profit it leads to? Explain your answer and suggest what would increase it.

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