88)which of the Following Is Not Mentioned in the Text

90)American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); National Bank quotes a bid rate of $0.024 and an ask rate for $0.025. Locational arbitrage would involve: A) buying rupees from American Bank at the bid rate and selling them to National Bank at the ask rate. B) buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate. C) buying rupees from American Bank at the ask rate and selling to National Bank at the bid rate. D) buying rupees from National Bank at the bid rate and selling them to American Bank at the ask rate. E) Locational arbitrage is not possible in this case.

91)Assume you discovered an opportunity for locational arbitrage involving two banks and have taken advantage of it. Because of your and other arbitrageurs' actions, the following adjustments must take place. A) One bank's ask price will rise and the other bank's bid price will fall. B) One bank's ask price will fall and the other bank's bid price will rise. C) One bank's bid/ask spread will widen and the other bank's bid/ask spread will fall. D) A and C