Bank a Quotes a Bid Rate of $0

question 2

Multiple Choice

Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) . Bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit. What will be the profit for an investor that has $500,000 available to conduct locational arbitrage?

• A) $2,041,667
• B) $9,804
• C) $500
• D) $1,639

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Definitions:

Drug Therapy

The treatment of disease through the administration of drugs or medications to achieve a therapeutic effect.

Aerobic Exercise

Physical exercise of low to high intensity that depends primarily on the aerobic energy-generating process, commonly known as "cardio".

State Anxiety

A temporary condition of dread or uneasiness stemming from a specific situation.

Weight Lifting

A form of strength training in which weights are lifted to increase muscle mass and strength.