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PKR PKR Q3. Spot rate prevailing is 0.41: 0.42 and Red Bank expects 30 days forward rate to be 0.34 : 0.35. The following interbank

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PKR PKR Q3. Spot rate prevailing is 0.41: 0.42 and Red Bank expects 30 days forward rate to be 0.34 : 0.35. The following interbank lending and borrowing rates exist: Currency Lending Rate Borrowing Rate U.S. dollar 9.0% 9.3% Pakistani Rupee 9.5% 9.7% Assume that Red Bank has a borrowing capacity of either $25 million or 85 million Pakistani Rupees in the interbank market, depending on which currency it wants to borrow. How could Red Bank attempt to capitalize on its expectations without using deposited funds

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