Assume the following information regarding U.S. and Canadian annualized interest rates:

Currency	Lending Rate	Borrowing Rate
U.S Dollar ($)	5.89%	6.35%
Canadian Dollar (C$)	5.6%	6%

Piggy Bank can borrow either $20 million or C$30 million. Furthermore, Piggy Bank expects the spot rate of the Canadian dollar to be $0.82 in 60 days (the current spot rate is $0.80).

8.

What is the profit or loss from Piggy Bank's speculation if the spot rate 60 days from now is indeed $0.82?

a. $454,200

b. $479,667

c. $20.69 million

d. $20.21 million

e. $502,166

13.What is Piggy Bank's profit or loss from speculation if the spot rate 60 days from now is indeed $0.78?

a. $606,440

b. $24.24 million

c. $601,600

d. C$24.24 million

e. C$601,600

14.What amount will the borrowed amount convert to today?

a. $16 million

b. $25 million

c. C$24.39 million

d. C$25 million

e. C$16 million

16.

Malone Bank also plans to speculate on the Canadian dollar's currency movements, but it expects the Canadian spot rate 60 days from now to be $0.78. Based on this information, what amount will the borrowed amount convert to today?

a. $24 million

b. $16 million

c. C$24 million

d. C$ 16 million