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The following quotes present an arbitrage opportunity. Bank A: $ 1 . 1 0 = 1 Bank B: 1 . 2 5 = 1 Bank

The following quotes present an arbitrage opportunity.
Bank A: $1.10=1
Bank B: 1.25=1
Bank C: $1.40=1
When the equilibrium condition is restored after arbitrage activities, would the number, 1.25, in Bank go up or down?
Select one:
a. Go down.
b. Go up.
c. Stay the same.
d. Cannot be determined by these numbers.
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