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Assume the following information regarding U.S. and European annualized interest rates: Currency U.S. Dollar ($) Euro () Lending Rate 2% 3% Borrowing Rate 6% 7%

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Assume the following information regarding U.S. and European annualized interest rates: Currency U.S. Dollar ($) Euro () Lending Rate 2% 3% Borrowing Rate 6% 7% Trensor Bank can borrow either $20 million or 20 million. The current spot rate of the euro is $1.10. Furthermore, Trensor Bank expects the spot rate of the euro to be $1,13 in 90 days. What is Trensor Bank's dollar profit from speculating if the spot rate of the euro is indeed $1.13 in 90 days? $379,845 $383,800 $399,545. $484,245. O $580,245

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