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Mui Bank expects that Hong Kong dollar (HK ) will appreciate against the Malaysian ringgit from its spot rate of MYR0.55 to MYR0.57 in 1

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Mui Bank expects that Hong Kong dollar (HK ) will appreciate against the Malaysian ringgit from its spot rate of MYR0.55 to MYR0.57 in 1 month ( 30 days). The following interbank lending and borrowing exists: ssume that Mui Bank has a borrowing capacity of either RM20 million or HK $40 million in e interbank international money market, depending on which currency it wants to borrow. ow could Mui Bank execute a carry trade without using the surplus deposit funds? Estimate profits or losses generated by the carry trade

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