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Question 1 a) Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. Bid price of USD Ask Price of

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Question 1 a) Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. Bid price of USD Ask Price of USD Bank A GHS 5.72 GHS 5.85 Bank B GHS 5.55 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 GHS 10 million to use. What market forces would occur to eliminate any further possibilities of locational arbitrage

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