Blueberry Financial Corp. (a U.S. firm) expects the Ethiopian Birr to appreciate against the U.S. Dollar over the next 30 days. The current spot rate is $1 = 47.1834 Ethiopian Birr. Blueberry expects the spot rate to appreciate $1= 42.3622 in 30 days.

Short-term annual rates in the interbank market are as follows:

	Lending Rates	Borrowing Rates
U.S. Dollars ($)	3.21%	3.67%
Ethiopian Birr	5.25%	6.07%

Blueberry Financial does not want to use any of its own capital and goes to the money markets to borrow funds for 30 days. Blueberry will borrow $22,000,000, convert U.S. Dollars to Birr at the prevailing spot rate, and invest in a 30-day Certificate of Deposit in Ethiopia.

1) How many Birrs will the proceeds from the 30-day loan convert into?

2) What is the value of the maturity value of the 30-day investment in Birr?

3) Assuming that the spot rate is $1= 42.3622 Birr, in 30 days, how many U.S. Dollars will the proceeds from the 30-Day CD in Ethiopia convert into?

4) How much is Blueberrys profit/loss?