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Answer to Question #96849 in Financial Math for ABU

Question #96849
Consider two Tanzanian Banks, A and B, with the following quotes which are expressed as Ksh/Tsh.

Bank A Bank B

Tsh quote Bid Ask Bid Ask
Ksh0.06 Ksh.0.07 Ksh 0.08 Ksh0.09

Required
Compute the gain from locational arbitrage to a Tanzanian investor with Kshs.30 million to invest
1
Expert's answer
2019-10-25T10:30:40-0400
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