Blue Demon Bank expects that the Mexican peso will depreciate against the doltar from its spot rate of 50.17 to $5.14 in 15 days, The following interbank Jending and borrowing rotes exist: Aspume that Blue Demon Bank has a borrowing capacity of either $11 milion or 60 million pesos in the interbank market, depending on which currency it want. to borrow. Assume 360 days in year for your calculations. Do not round intermediate calculations. Round your ansmers to the nearest doliar. a. How could Blue Demon Bank attempt to copitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this ptratecy. Blue Demon Bank can capitalize on its expectations by borrowing , converting it to , lending the losn. The expected protic is 5 b. Assume all the preceding information with this exception: Biue Demon Bank expects the peso to appreciate from its present spot rate of 50.17 to 50.21 in 4. days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the grotits that could be generated from this strategy. Btue Dernon Bank can capitalize on its expectations by borrowing , converting it to , lending the , and regaying the loan. The expected profit is 5 . Blue Demon Bank expects that the Mexican peso will depreciate against the doltar from its spot rate of 50.17 to $5.14 in 15 days, The following interbank Jending and borrowing rotes exist: Aspume that Blue Demon Bank has a borrowing capacity of either $11 milion or 60 million pesos in the interbank market, depending on which currency it want. to borrow. Assume 360 days in year for your calculations. Do not round intermediate calculations. Round your ansmers to the nearest doliar. a. How could Blue Demon Bank attempt to copitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this ptratecy. Blue Demon Bank can capitalize on its expectations by borrowing , converting it to , lending the losn. The expected protic is 5 b. Assume all the preceding information with this exception: Biue Demon Bank expects the peso to appreciate from its present spot rate of 50.17 to 50.21 in 4. days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the grotits that could be generated from this strategy. Btue Dernon Bank can capitalize on its expectations by borrowing , converting it to , lending the , and regaying the loan. The expected profit is 5
