​Assume the Bid Rate of a Swiss Franc Is

Multiple Choice

​Assume the bid rate of a Swiss franc is $.57 while the ask rate is $.579 at Bank X. Assume the bid rate of the Swiss franc is $.560 while the ask rate is $.566 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) ​$7,067
B) ​$8,556
C) ​$10,114
D) ​$12,238