Assume the Bid Rate of a New Zealand Dollar Is

question 5

Multiple Choice

Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335 at Bank X. Assume the bid rate of the New Zealand dollar is $.32 while the ask rate is $.325 at Bank Y. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with?​

• A) ​$15,385
• B) ​$15,625
• C) ​$22,136
• D) ​$31,250

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Definitions:

Energy Transfer

The movement of energy from one location to another or one form to another, typically involving processes like heat transfer, work done, or the flow of electrical energy.

Living Organisms

Entities that exhibit the characteristics of life, such as growth, reproduction, and the ability to respond to their environment.

Maltose

A disaccharide sugar formed from two glucose molecules, involved in the breakdown of starch during digestion.

Glucose

A basic form of sugar that serves as a crucial source of energy for living beings and is found in numerous carbohydrates.