I need the solution of question no 5.

5. Blue Demon Bank expects that the Mexican peso will depreciate against the dollar from its spot rate of $0.15 to $0.14 in 60 days. The following interbank lending and borrowing rates exist: Currency U.S. dollar Mexican peso Lending Rate 8.0% 8.5% Borrowing Rate 8.3% 8.7% Blue Demon Bank considers borrowing 10 million Mexican pesos in the interbank market and investing the funds in U.S. dollars for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Blue Demon Bank pursue this strategy? Cur rectness Company Strength Matrix