1. Speculation. Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $.15 to $.14 in 10 days. The following interbank lending and borrowing rates exist: U-S- dollar Assume that Blue Demon Bank has a borrowing capacity of either $10 million or 70 million pesos in the interbank market. depending on which currency it wants to borrow. a. How could Blue Demon Bank attempt to capitalize on its expectations without using deposited funds? Estimate the prots that could be generated from this strategy. h. Assume all the preceding information with this exception: Blue Demon Bank expects the peso to appreciate from its present spot rate of $.15 to $.11Ir in 30 days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the prots that could be generated from this strategy