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Locational Arbitrage. Assume the following information: Beal Bank Yardley Bank Bid price of New Zealand dollar $.734 $.731 Ask price of New Zealand dollar $.736

Locational Arbitrage. Assume the following information: Beal Bank Yardley Bank Bid price of New Zealand dollar $.734 $.731 Ask price of New Zealand dollar $.736 $.732 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 $100,000 to use. What market forces would occur to eliminate any further possibilities of locational arbitrage

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