Bank of America (USA) believes that New Zealand $ will appreciate over the next 90 days from $0.48/NZ$ to $0.50/NZ$. The following annual interest rate can be applied:

Currency Lending rate (Annual) Borrowing rate(Annual)

US dollar 7.10% 7.50%

NZ$ 6.80% 7.25%

BOA has the capacity to borrow $5million from ChaseBank. If BOA's forecast is correct, what would be BOA's US$ profit from this FX speculation over the 90 day period?

$0.556 million

$5.3 million

$0.207 million

$5.093 million