Which of the following will occur to prevent the arbitrage profits you found in the...
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Accounting
Which of the following will occur to prevent the arbitrage profits you found in the previous question? The ask quote for pounds in terms of Canadian dollars will decrease at Bank X. The bid quote for pounds in terms of Canadian dollars will decrease at Bank Y. The bid quote for pounds in terms of Canadian dollars will increase at Bank Y. No changes are necessary since locational arbitrage is not possible.
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