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The quotation of GBP/EUR are available in the table below. (a) Determine whether the quotations given are appropriate. Prove your answer. (b) If the quotations

The quotation of GBP/EUR are available in the table below.

(a) Determine whether the quotations given are appropriate. Prove your answer.

(b) If the quotations are not appropriate, find the profit (in EUR) that you can make from the locational arbitrage. Assume that you have EUR 5,000,000.

	Bid	Ask
Bank A (GBP/EUR)	0.8667	0.8669
Bank B (GBP/EUR)	0.8670	0.8673

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