Which bank has the most competitive ask price? Which bank has the most competitive bid price? Is there a locational arbitrage opportunity? Why or why not?

Use the following quotes to answer the questions 1 − 3

Direct Market for ¥/MXN Bids asks

Deutsche Bank’s quote: ¥12.09/MXN ¥12.22/MXN

Barclays’ quote: ¥12.11/MXN ¥12.18/MXN

CSFB’s quote: ¥12.10/MXN ¥12.17/MXN

Citigroup’s quote: ¥12.08/MXN ¥12.21/MXN

Which bank has the most competitive ask price?
Which bank has the most competitive bid price?
Is there a locational arbitrage opportunity? Why or why not?

Expert Solution

jeff jeffy answered 1 year ago

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