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Suppose that Sailbridge Bank and Signbit Bank have revised their quotations for the British pound. The revised quotations are shown in the following table: Sailbridge

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Suppose that Sailbridge Bank and Signbit Bank have revised their quotations for the British pound. The revised quotations are shown in the following table: Sailbridge Bid Ask Signbit Bid Ask $2.03 $2.05 British pound $1.98 $2.03 Suppose that you have $16,000 to use to engage in locational arbitrage. In this case, which is the most likely outcome of attempting to engage in locational arbitrage? You cannot profit from locational arbitrage in this situation. Earn a profit of $173.39. Earn a profit of $141.87. Earn a profit of $126.10

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