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Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. Bank A Bank B Bid price of USD GHS 5.72
Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. Bank A Bank B Bid price of USD GHS 5.72 GHS 5.55 Ask Price of USD GHS 5.85 GHS 5.65 Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had GHS10 million to use. What market forces would occur to eliminate any further possibilities of locational arbitrage?
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