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answer i and ii pls i) How could Bank of Singapore attempt to capitalize on its expectations without using deposited funds? Estimate the profits that
answer i and ii pls
i) How could Bank of Singapore attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. (10 marks) ii) Assume all the preceding information with this exception: Bank of Singapore expects the Malaysia ringgit to appreciate from its present spot rate of $0.35 to $0.37 in 30 days. How could it attempt to capitalize on its' expectations without using deposited funds? Estimate the profits that could be generated from this strategy. I (10 marks) (Total: 25 marks) 226 i) How could Bank of Singapore attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. (10 marks) ii) Assume all the preceding information with this exception: Bank of Singapore expects the Malaysia ringgit to appreciate from its present spot rate of $0.35 to $0.37 in 30 days. How could it attempt to capitalize on its' expectations without using deposited funds? Estimate the profits that could be generated from this strategy. I (10 marks) (Total: 25 marks) 226 b. Bank of Singapore expects that the Malaysia ringgit will depreciate against the Singapore dollar from its spot rate of $0.35 to $0.33 in 20 days. The following interbank lending and borrowing rates exist: CURRENCY LENDING RATE BORROWING RATE Malaysia ringgit 5.5%'ZLK 6% Singapore dollar 6.5% 7% Assume that Bank of Singapore has a borrowing capacity of either SGD 15million or RM 50 million in the interbank market, depending on which currency it wants to borrow. I 3
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