Company A expects that the us dollar will depreciate against the Singapore dollar from the spot rate of S$0.20 to S$0.15 in 30 days. The interbank lending rate of Singapore dollar 6.0% and the USA dollar is 6.5%, the borrowing rate for Singapore dollars 6.3% while that of USA dollar is 6.7%.

Assume that company A has a borrowing capacity of either $100 million or 150 million Singapore dollars in the interbank.

1. How could company A attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy.

2. using the forecast exchange rate (technical forecasting, fundamental forecasting, use of PPP fundamental forecasting, and market-based forecasting) to forecast the Singapore dollar exchange rate in one month