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please answer!!! Assume the following information: Interest rate on borrowed euros () is 5 percent annualized Interest rate on dollars loaned out is 8 percent

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Assume the following information: Interest rate on borrowed euros () is 5 percent annualized Interest rate on dollars loaned out is 8 percent annualized Spot rate for 0.83 per dollar (one = $1.20) Expected spot rate in five days is 0.87 per dollar Sorrento Bank can borrow 10 million What is the euro profit to Sorrento Bank over the five-day period from shorting euros and going long on dollars? 444,659 None of these 430,822 437,115 458,555

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