Compute the profit from the arbitrage

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Reference no: EM131325289

Assume the following information:

 

Bank X

Bank Y

Bid price of Swiss francs

$.401

$.398

Ask price of Swiss francs

$.404

$.400

Given this information, is arbitrage possible? If so, explain the steps that would create the arbitrage. Compute the profit from this arbitrage if you had $1,000,000 to use.

Reference no: EM131325289

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