6. You work for a bank that expects the spot rate of the euro to be $1.10 in 180 days. Currently, the euro spot rate is $1.15. Your bank can borrow either $10 million or 10 million. The interbank lending and borrowing rates are as follows (note that these are annualized rates): U.S. dollar Euro 2002 What is your bank's dollar profit (i.e., profit in U.S. dollars) from speculating assuming that the euro moves in line with your bank's expectation? 342 1512E sommer Lending Rate 1% 2% 126 12 R 25-0723 S B Borrowing Rate 3% 4% Pes

6. You work for a bank that expects the spot rate of the euro to be $1.10 in 180 days. Currently, the euro spot rate is $1.15. Your bank can borrow either $10 million or 10 million. The interbank lending and borrowing rates are as follows (note that these are annualized rates): What is your bank's dollar profit (i.e., profit in U.S. dollars) from speculating assuming that the euro moves in line with your bank's expectation