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Chase Bank can borrow either $30 million or 30 million. The current spot rate of the euro is $1.14. Furthermore, Chase Bank expects the spot
Chase Bank can borrow either $30 million or 30 million. The current spot rate of the euro is $1.14. Furthermore, Chase Bank expects the spot rate of the euro to be $1.10 in 90 days. What is Chase Bank's dollar profit from speculating if the spot rate of the euro is indeed $1.10 in 90 days? Note that the lending rate and borrowing rate is 6.8% and 7.28% respectively in Euro (). Similarly, the lending rate is 6.73% and the borrowing rate is 7.20% in U.S. dollar ($)
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