(100 Points) A Thai bank quote 3-month deposit interest rate (simple, p.a.) at 1.00% (if deposit in THB) and 2.00% (if deposit in USD) for its large corporate customer. Given the current spot rate at 32.85 and the USD swap point for 3 - month forward contract is now at 0.08 baht (at discount). - Determine which type of deposit provide higher return for Thai corporate? - Given that banks have to pay additional regulatory cost to FIDF and DPA for all baht deposit at 0.24% p. a., taking which type of deposit is a better option, i. e. cheaper, for the bank