(3)(a)Suppose the MIDLAND bank expects the Mexican peso will depreciate against the US$ from its spot rate of $0.15 to $0.14 in 10 days. The following interbank lending and borrowing rates exist: Currency Lending Rate Borrowing Rate US$ 8% 8.3% Mexican peso 8.5% 8.7% Midland Bank has a borrowing capacity of either US$ 10 million or 70 million pesos in the interbank market depending on which currency it wants to borrow. How would the bank attempt to make a speculative profit based on expected exchange rate movement without risking depositors' money? Estimate the profit (or losses) that could be earned from this strategy. (b)Identify the factors which determine changes in equilibrium exchange rate. Discuss how any two of these factors affect equilibrium exchange rate. Use appropriate graphical illustrations