Your company has $1,000,000 in U S dollars that can be used to try to make arbitrage profits You observe that the exchange rates for Swiss francs are different at the two main banks used by your company, as follows Red Bank Blue Bank Bid $1 085 $1 089 Ask $1 082 $1 086 What profits, if any, can your firm make using these funds for arbitrage, if you move quickly before exchange rates adjust

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Your company has $1,000,000 in U.S. dollars that can be used to try to make arbitrage profits. You observe that the exchange rates for Swiss

Your company has $1,000,000 in U.S. dollars that can be used to try to make arbitrage profits. You observe that the exchange rates for Swiss francs are different at the two main banks used by your company, as follows:

	Red Bank	Blue Bank
Bid	$1.085	$1.089
Ask	$1.082	$1.086

What profits, if any, can your firm make using these funds for arbitrage, if you move quickly before exchange rates adjust?

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