For locational arbitrage to be possible, one bank's ask rate must be higher than another bank's bid rate for a currency.
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Q14: Interest rate parity (IRP) states that the
Q15: Triangular arbitrage tends to force a relationship
Q16: Locational arbitrage involves investing in a foreign
Q17: Assume locational arbitrage is possible and involves
Q18: From the U.S. perspective, an example of
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Q21: Realignment in the exchange rates of banks
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Q24: If the cross exchange rate of two
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