Assume the Following Bid and Ask Rates of the Pound

Multiple Choice

Assume the following bid and ask rates of the pound for two banks as shown below: ​
Bid
Ask
Bank C
$1) 61
$1) 63
Bank D
$1) 58
$1) 60
​
As locational arbitrage occurs:

A) the bid rate for pounds at Bank C will increase; the ask rate for pounds at Bank D will increase.
B) the bid rate for pounds at Bank C will increase; the ask rate for pounds at Bank D will decrease.
C) the bid rate for pounds at Bank C will decrease; the ask rate for pounds at Bank D will decrease.
D) the bid rate for pounds at Bank C will decrease; the ask rate for pounds at Bank D will increase.