Blue Demon Bank expects the Mexican peso to depreciate against the US dollar from its spot rate of $ 0.15 to $ 0.14 in 10 days. The following lending and borrowing rates exist in both countries US Dollar Lending Rate - 8.0% Borrowing Rate -8.3% Mexican Peso: Lending Rate - 8.5% Borrowing Rate -8.7% Assume that the bank's borrowing capacity is US $ 10 million or US $ 70 million Blue Demon Bank expects the Mexican peso to depreciate against the US dollar from its spot rate of $ 0.15 to $ 0.14 in 10 days. The following lending and borrowing rates exist in both countries US Dollar Lending Rate - 8.0% Borrowing Rate -8.3% Mexican Peso: Lending Rate - 8.5% Borrowing Rate -8.7% Assume that the bank's borrowing capacity is US $ 10 million or US $ 70 million