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Baylor Bank believes the New Zealand dollar will depreciate over the next 60 days from $.48 to $.46. The following annual interest rates apply: Currency.
Baylor Bank believes the New Zealand dollar will depreciate over the next 60 days from $.48 to $.46. The following annual interest rates apply: Currency. Dollars New Zealand dollar (NZ$) Lending Rate 7.10% 6.80% Borrowing Rate 7.40% 7.25% Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the 60-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)? O $521,325. O $308.234. $194,151. $ 201,217 $208,044
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