MSU Bank believes the New Zealand dollar will appreciate over the next 6 months from NZD1.406/USD (current) to NZD1.355/USD (in 6 months). The following 6-month interest rates apply: (the rates are periodic rates so you do not need to adjust them at all we do not need to multiply by 180/360 or anything like that)

Currency Lending (deposit) Rate Borrowing Rate

Dollars 2.00% 2.25%

New Zealand dollar (NZ$) 2.55% 2.75%

MSU Bank has the capacity to borrow either NZ$10 million or $6 million. If MSU Banks forecast if correct, what will its U.S. dollar profit be from speculation over the 6-month period