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Explain the concept of locational arbitrage

Explain the concept of locational arbitrage 



1.	Locational Arbitrage. Explain the concept of locational arbitrage and the scenario necessary for it to be plausible.

2.	Locational Arbitrage. Assume the following information:

		Beal Bank 	  Yardley Bank
	Bid price of New Zealand dollar	$.401	$.398
	Ask price of New Zealand dollar	$.404	$.400

	Given this information, is locational arbitrage possible?  If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of locational arbitrage?



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16 Apr 2016

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  1. Genius

    Explain the concept of locational arbitrage

    Explain the concept of locational arbitrage Explain the concept of locational arbitrage Explain ****** ******
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