Q5. For ABC Co., it expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its present level of $.50 to $.54 in 30 days. It is able to borrow $20 million or NZ$40 on a short-term basis from other banks. Present short-term interest rates (annualized) in the interbank market are as follows: (7 marks) CURRENCY BORROWING RATE LENDING RATE 6.75% U.S. dollars 7.25% New Zealand dollars (NZ$) 6.46% 6.94% Assuming that ABC Co. is interested to adopt a speculative strategy, how can it make money out of this scenario? If instead, the NZ Dollar is expected to devalue from $0.50 to $0.46, then what would be the strategy? Explain with logical step by step actions that ABC Co. would need to take. Q5. For ABC Co., it expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its present level of $.50 to $.54 in 30 days. It is able to borrow $20 million or NZ$40 on a short-term basis from other banks. Present short-term interest rates (annualized) in the interbank market are as follows: (7 marks) CURRENCY BORROWING RATE LENDING RATE 6.75% U.S. dollars 7.25% New Zealand dollars (NZ$) 6.46% 6.94% Assuming that ABC Co. is interested to adopt a speculative strategy, how can it make money out of this scenario? If instead, the NZ Dollar is expected to devalue from $0.50 to $0.46, then what would be the strategy? Explain with logical step by step actions that ABC Co. would need to take