Locational Arbitrage

Locational Arbitrage - Convert $100000 into Baht at the...

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Bid Ask Mizu bank Baht in $ $0.0224 $0.227 Yen in $ $0.0085 $0.0086 Baht in Yen ¥2.69 ¥2.7 Sobat Bank Baht in $ 0.02 0.02 1 Exchange $100000 to Baht at $0.0227 $100000/$0.0227 = $4,405,286.34 Sell $4405286.34 to Sobat Bank at the bid rate $0.0228 $4405286.34*$0.0228 = $100,440.528 Profit = $100440.528-$100000 = $440.53 2 Exchanging $100000 in order to obtain maximum profit
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Unformatted text preview: Convert $100000 into Baht at the $0.0227 $100000/$0.0227 = $4,405,286.34 $4405286.34*2.69 = 1185022.0.2 Convert 1185022.01 into $ at the ask rate of $0.0085 11850220.2*$0.0085 = $100,726.87 Hence Profit = $100726.87-$100000 = $726.87 Sell $440528.63 to Mizu bank for Yen at bid price 2.69...
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