1. Assume the following information regarding U.S. and European 90-day interest rates:

(The rates are periodic rates so you do not need to adjust them at all - you do not need to multiply by 90/360 or anything like that)

Currency Lending Rate Borrowing Rate

U.S. Dollar ($) 1.68% 1.80%

Euro () 1.70% 1.82%

Milly Bank can borrow either $20 million or 20 million. The current spot rate of the euro is $1.13. Furthermore, Milly Bank expects the spot rate of the euro to be $1.10 in 90 days. What is Milly Bank's dollar profit from speculating if the spot rate of the euro is indeed $1.10 in 90 days?

What is the BEEX in 90 days? (in $/)