(2)One reason Commercial Banks buy forex for their own account is to capitalize on their forecast of anticipated exchange rate movements in forex markets. Suppose the Lion Bank expects the Thai Baht would depreciate from $0.022 to $0.020 in 30 days and can borrow $ 10million or its Thai Baht equivalent on short term basis from the interbank market under the following market conditions: CURRENCY LENDING RATE BORROWING RATE (annualized) (annualized) U.S. Dollars 8.10% 8.20% Thai Baht 14.80% 15.40% (a)Briefly explain the process the Lion Bank would follow to capitalize on its expectations. (b)Suppose the Bank's forecast was correct, how much speculative profit would it earn? (c)If the bank had anticipated that the Thai Baht would appreciate from its current rate to $0.025 in 30 days, would it still be able to engage in this speculative activity to make a profit? If it can, show how much profit it could make