If two banks are quoting the following GBP rates: Bank A : Rs 78.9810 - 79.1110 and Bank B : Rs 79. 0110 - 79.2350. The arbitrage opportunity will be .

Question

Quizplus · Accepted Answer

There is no arbitrage opportunity because the selling price of Bank A (79.1110) is not lower than the buying price of Bank B (79.0110), and the buying price of Bank A (78.9810) is not higher than the selling price of Bank B (79.2350). Arbitrage requires a price discrepancy where you can buy low from one source and sell high to another, which does not exist in this scenario.

If Two Banks Are Quoting the Following GBP Rates: Bank