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Suppose you get the following quotes from Bank A and B on Euro. Bank A Bid Ask Bank B Bid Ask USD1.2610/EU USD1.2630/EUR USD1.2640/EUR USD1.2660/EUR

Suppose you get the following quotes from Bank A and B on Euro.

Bank A Bid Ask Bank B Bid Ask

USD1.2610/EU USD1.2630/EUR USD1.2640/EUR USD1.2660/EUR

You realize that you can use local arbitrage to take advantage of the quotes difference. If you could put as much as $1 million into the arbitrage, how much would be your arbitrage profits? To get full credits, you need to include step by step instructions on how to carry out this strategy.

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