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Mr. Q is a Bangladeshi businessman who is interested to take speculative benefit from the expected movement of Bangladeshi taka over next 3 month. Also
Mr. Q is a Bangladeshi businessman who is interested to take speculative benefit from the expected movement of Bangladeshi taka over next 3 month. Also show the speculative profit (in taka) resulting from each scenario. Assume Mr. Q is going to take the speculative benefit on 5,00,000 taka Furthermore, assume that the following short-term interest rates (annualized) are available to Mr. Q: Currency Lending Rate Borrowing Rate Dollar 5.4% 6.6% 10% Taka 12% Today's spot exchange rate is $1= BDT 86:6 and after 3 month, the expected spot rate will be $1= BDT 89.9. Show the impact of high inflation in home country on exchange rate in graph with explanation. Mr. Q is a Bangladeshi businessman who is interested to take speculative benefit from the expected movement of Bangladeshi taka over next 3 month. Also show the speculative profit (in taka) resulting from each scenario. Assume Mr. Q is going to take the speculative benefit on 5,00,000 taka Furthermore, assume that the following short-term interest rates (annualized) are available to Mr. Q: Currency Lending Rate Borrowing Rate Dollar 5.4% 6.6% 10% Taka 12% Today's spot exchange rate is $1= BDT 86:6 and after 3 month, the expected spot rate will be $1= BDT 89.9. Show the impact of high inflation in home country on exchange rate in graph with explanation
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