Vienna Corporate Treasury. A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New

York City and Barclays in London. The banks give the following quotes on the euro simultaneously.

Using $$5\mathrm{.}5$ million or its euro equivalent, determine if and how the corporate treasury could make geographic arbitrage profit with the two

different exchange rate quotes.

Calculate the first arbitrage opportunity below: $($Round to the nearest cent.$)$

Arbitrage Strategy #$1$

Buy euros from Barclays $($at the ask rate$)$

Buy euros from Barclays $($at the bid rate$)$

Buy euros from Barclays $($at the ask rate$)$