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xiii) Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. (2 marks) Bank A Bank B Bid price of

xiii) Explain the concept of locational arbitrage and the scenario necessary for it to be plausible. (2 marks)

Bank A

Bank B

Bid price of Ghana Cedi

$0.2222

$0.2251

Ask Price of Ghana Cedi

$0.2247

$0.2255

Given the above information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1 million to use. (3 marks)

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