Assume the Bid Rate of a New Zealand Dollar Is

Assume the bid rate of a New Zealand dollar is £0.183 while the ask rate is £0.185 at Bank X. Assume the bid rate of the New Zealand dollar is £0.179 while the ask rate is £0.182 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) -£16,484
B) £21,978
C) £16,484
D) £5,494