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Suppose you see the two following bid/ask quotes for euros. Prices are listed in U.S. Dollars: Bank X: 1.185/1.195 Bank Y: 1.180/1.190 Is there an
Suppose you see the two following bid/ask quotes for euros. Prices are listed in U.S. Dollars: Bank X: 1.185/1.195 Bank Y: 1.180/1.190 Is there an arbitrage opportunity available?
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Yes, because they have equal bid-ask spreads with different prices
Yes, because Bank Y's prices are lower than Bank X's prices
No, because their bid-ask ranges overlap
No, because Bank X's ask is above Bank Y's bid
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