Options are:

a. $3,130,036.00 b. $66,377,300.00 c. $2,889,264.00 d. $2,407,720.00

Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to depreciate from its current level of 0.5 to 0.46 in 30 days. Denver Financial seeks to capitalize on this potential opportunity. Suppose that Denver Financial begins by borrowing NZ$60,000,000 and converting it to U.S. dollars. The following table shows the short-term interest rates (annualized) in the interbank market. Lending Rate (Adjusted for 30-day period) Borrowing rate (Adjusted for 30-day period) 7.10% Currency U.S. Dollars 6.62% 6.38% 6.86% New Zealand Dollars (NZS) In the previous stages of this problem, you found that Denver Financial initially borrowed funds and must repay the equivalent of $27.757,780.00 after 30-days. However, using those funds, Denver Financial was able to secure $30,165,500.00 after 30-days (principal plus interest) due to their investment (U.S. dollars). Thus, Denver's speculative profit is