21 22 Assume the following information regarding US and European annualized Interest rates Currency Lending Rate Morrowing Rate US Dollar (5) 7.00 7.2016 6.70% Euro ( 6.50M Alpha Bank can borrow either $20 million or 20 million. The current spot rate of the Sleure is 200. Furthermore, Alpha Bank expects the sports of the Stero la 150 in 60 days. What is Alpha Bank's profit from speculating if the spot rate of the euro is indeed $1.50 in 60 days? [Marks 0.5 +1+0.5-31 Required: a. Determine in which currency Alpha will borrow and in which currency Alpha bank will invest. b. After 60 days what is the total amount of borrowing currency with interest cAfter 60 days what is the total amount of lending currency with interest. d. After 60 days what is the total amount of profit in euro