Assume the Bid Rate of a New Zealand Dollar Is

Multiple Choice

Assume the bid rate of a New Zealand dollar is $.33 while the ask rate is $.335 at Bank X. Assume the bid rate of the New Zealand dollar is $.32 while the ask rate is $.325 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) ​$15,385
B) ​$15,625
C) ​$22,136
D) ​$31,250