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Explain the working mechanism behind locational arbitrage. Calculate and explain if locational arbitrage is possible in the following situation: Bank A Bank B Bid Ask

Explain the working mechanism behind locational arbitrage. Calculate and explain if locational arbitrage is possible in the following situation:

Bank A	Bank B
Bid	Ask	Bid	Ask
$0.4	$0.45	$0.5	$0.55

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